Is The Hershey Co. overvalued or undervalued?

As of 22 August 2025, the valuation grade for The Hershey Co. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 21, an EV to EBITDA of 15.74, and a Price to Book Value of 7.66. In comparison, peers such as McCormick & Co., Inc. have a P/E of 24.07, while Kellanova is considered very expensive with a P/E of 26.43, suggesting that Hershey's valuation is more reasonable within its industry context.
Despite its fair valuation, The Hershey Co. has underperformed against the S&P 500 over the longer term, with a 1-year return of -4.33% compared to the S&P 500's 17.14%. However, it has shown some resilience in shorter time frames, with a 1-month return of 5.99% versus the S&P 500's 2.33%. Overall, the company's current valuation metrics suggest it is fairly positioned within the market.