Is The Hershey Co. overvalued or undervalued?

As of 31 October 2025, The Hershey Co. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 21, an EV to EBITDA of 15.74, and a Price to Book Value of 7.66. In comparison, Kellanova has a P/E of 26.43 and an EV to EBITDA of 17.71, while McCormick & Co., Inc. shows a P/E of 24.07 and an EV to EBITDA of 17.87, indicating that Hershey's valuation is more conservative relative to its peers.
The stock has underperformed compared to the S&P 500 over various periods, with a year-to-date return of just 0.17% versus the S&P 500's 16.30%, and a three-year return of -28.96% compared to the S&P 500's 76.66%. This trend reinforces the notion that The Hershey Co. is fairly valued in the current market environment.