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 valuation 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, peers such as Kellanova have 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 than some of its peers.
In terms of recent performance, The Hershey Co. has underperformed against the S&P 500 across multiple periods, with a 1-year return of -7.42% compared to the S&P's 19.89%, suggesting that the market may be pricing in concerns about growth relative to its benchmark.