Is McCormick & Co., Inc. overvalued or undervalued?

As of 17 October 2025, McCormick & Co., Inc. moved from very expensive to fair in its valuation grade. The company is currently fairly valued based on its valuation ratios, including a P/E ratio of 25, an EV to EBITDA of 18.93, and a Price to Book Value of 3.67. In comparison to peers, Kellanova has a higher P/E ratio of 26.43, while The Hershey Co. also shows a fair valuation with a P/E of 26.49, indicating that McCormick is positioned competitively within its industry.
Despite its fair valuation, McCormick has underperformed relative to the S&P 500, with a year-to-date return of -11.41% compared to the index's 13.30%. This trend continues over longer periods, with a 5-year return of -32.25% versus the S&P's 91.29%, suggesting that while the stock may be fairly valued, it faces significant challenges in delivering returns to investors.