Latest Ratios: P/E Ratio 40.5x · EV/EBITDA 27.7x · ROE 18.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $35.7B | $37.0B | $34.5B | $38.3B | $47.8B | $40.2B | $31.9B | $31.0B | $22.6B | $24.3B | $22.3B |
| Enterprise Value | $40.1B | $41.5B | $39.2B | $43.0B | $52.5B | $45.2B | $35.6B | $35.0B | $26.5B | $26.8B | $25.0B |
| P/E Ratio → | 40.54 | 41.93 | 15.48 | 20.58 | 29.09 | 27.21 | 24.93 | 26.92 | 19.21 | 31.01 | 30.97 |
| P/S Ratio | 3.05 | 3.16 | 3.08 | 3.43 | 4.59 | 4.48 | 3.91 | 3.88 | 2.90 | 3.23 | 2.99 |
| P/B Ratio | 7.71 | 7.98 | 7.31 | 9.35 | 14.50 | 14.58 | 14.25 | 17.75 | 16.07 | 26.04 | 26.90 |
| P/FCF | 20.39 | 21.15 | 17.90 | 24.69 | 26.45 | 25.33 | 25.36 | 21.42 | 17.79 | 24.46 | 31.19 |
| P/OCF | 15.66 | 16.24 | 13.61 | 16.50 | 20.55 | 19.30 | 18.77 | 17.56 | 14.13 | 19.42 | 22.64 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.55 | 3.50 | 3.86 | 5.04 | 5.04 | 4.37 | 4.38 | 3.40 | 3.57 | 3.35 |
| EV / EBITDA | 27.70 | 28.62 | 11.68 | 14.44 | 19.88 | 19.18 | 17.12 | 18.52 | 13.80 | 17.01 | 16.55 |
| EV / EBIT | 28.33 | 28.62 | 14.79 | 18.45 | 25.52 | 23.48 | 21.58 | 22.80 | 17.01 | 22.14 | 20.94 |
| EV / FCF | — | 23.71 | 20.34 | 27.73 | 29.03 | 28.51 | 28.28 | 24.18 | 20.83 | 27.02 | 34.95 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.3% | 33.3% | 47.3% | 44.8% | 43.2% | 45.1% | 45.4% | 45.4% | 45.9% | 46.0% | 42.6% |
| Operating Margin | 12.1% | 12.1% | 25.9% | 22.9% | 21.7% | 22.8% | 21.9% | 20.0% | 20.8% | 17.5% | 16.2% |
| Net Profit Margin | 7.6% | 7.6% | 19.8% | 16.7% | 15.8% | 16.5% | 15.7% | 14.4% | 15.1% | 10.4% | 9.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.9% | 18.9% | 50.4% | 50.3% | 54.3% | 59.2% | 64.2% | 72.9% | 100.7% | 89.0% | 76.8% |
| ROA | 6.6% | 6.6% | 17.9% | 16.3% | 15.4% | 15.1% | 14.8% | 14.5% | 17.8% | 14.1% | 13.2% |
| ROIC | 11.5% | 11.5% | 23.8% | 22.9% | 21.5% | 22.3% | 23.0% | 21.7% | 27.8% | 28.2% | 27.3% |
| ROCE | 14.4% | 14.4% | 32.4% | 30.9% | 29.0% | 27.0% | 26.7% | 28.0% | 37.1% | 37.0% | 35.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.17 | 1.17 | 1.16 | 1.25 | 1.55 | 1.95 | 2.15 | 2.57 | 3.17 | 3.14 | 3.60 |
| Debt / EBITDA | 3.73 | 3.73 | 1.62 | 1.72 | 1.94 | 2.28 | 2.32 | 2.37 | 2.32 | 1.85 | 1.98 |
| Net Debt / Equity | — | 0.97 | 1.00 | 1.15 | 1.41 | 1.83 | 1.64 | 2.28 | 2.75 | 2.73 | 3.24 |
| Net Debt / EBITDA | 3.09 | 3.09 | 1.41 | 1.58 | 1.76 | 2.14 | 1.77 | 2.11 | 2.02 | 1.61 | 1.78 |
| Debt / FCF | — | 2.56 | 2.45 | 3.04 | 2.57 | 3.18 | 2.92 | 2.76 | 3.04 | 2.56 | 3.76 |
| Interest Coverage | 6.99 | 6.99 | 15.19 | 14.45 | 14.68 | 14.84 | 10.74 | 10.08 | 10.60 | 12.10 | 12.96 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.19 | 1.19 | 0.96 | 0.97 | 0.80 | 0.90 | 1.57 | 1.05 | 0.93 | 0.96 | 0.95 |
| Quick Ratio | 0.72 | 0.72 | 0.64 | 0.52 | 0.44 | 0.50 | 1.06 | 0.65 | 0.60 | 0.60 | 0.56 |
| Cash Ratio | 0.31 | 0.31 | 0.19 | 0.13 | 0.14 | 0.13 | 0.60 | 0.25 | 0.24 | 0.18 | 0.16 |
| Asset Turnover | — | 0.85 | 0.87 | 0.94 | 0.95 | 0.86 | 0.89 | 0.98 | 1.01 | 1.35 | 1.35 |
| Inventory Turnover | 5.46 | 5.46 | 4.71 | 4.60 | 5.05 | 4.98 | 4.61 | 5.35 | 5.37 | 5.39 | 5.73 |
| Days Sales Outstanding | — | 22.77 | 26.08 | 26.93 | 24.91 | 27.32 | 27.55 | 25.98 | 27.83 | 28.57 | 28.52 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.0% | 2.9% | 3.1% | 2.3% | 1.6% | 1.7% | 2.0% | 2.0% | 2.5% | 2.2% | 2.2% |
| Payout Ratio | 122.9% | 122.9% | 48.8% | 47.8% | 47.1% | 46.4% | 50.1% | 53.1% | 47.8% | 67.2% | 69.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.5% | 2.4% | 6.5% | 4.9% | 3.4% | 3.7% | 4.0% | 3.7% | 5.2% | 3.2% | 3.2% |
| FCF Yield | 4.9% | 4.7% | 5.6% | 4.1% | 3.8% | 3.9% | 3.9% | 4.7% | 5.6% | 4.1% | 3.2% |
| Buyback Yield | 0.0% | 0.0% | 1.4% | 0.7% | 0.8% | 1.1% | 0.7% | 1.7% | 1.1% | 1.2% | 2.7% |
| Total Shareholder Yield | 3.0% | 2.9% | 4.6% | 3.0% | 2.4% | 2.8% | 2.7% | 3.7% | 3.6% | 3.4% | 4.9% |
| Shares Outstanding | — | $203M | $203M | $206M | $207M | $208M | $209M | $211M | $211M | $214M | $215M |
Volatile commodity input costs
Based on current market data, HSY trades at a 41.27x TTM P/E ratio, which appears elevated relative to its historical averages and peer group, suggesting that investors are pricing in a significant recovery in profitability that may not be fully supported by recent margin trends.
The forward P/E of 21.21 indicates that the market anticipates a substantial earnings rebound, likely driven by pricing power or a moderation in cocoa costs. However, given the recent volatility in operating margins, this valuation premium warrants caution as it assumes a level of earnings stability that the company has struggled to maintain over the last ten quarters.
As reported in financial statements, the company's ROIC has trended downward from 8.8% in 2024Q1 to 5.2% in 2026Q1, indicating that the firm is currently struggling to generate efficient returns on its invested capital base amidst a challenging inflationary environment for key raw materials.
The decline in ROIC suggests that the capital deployed into recent acquisitions and infrastructure may be failing to yield the expected accretive returns. Investors should monitor whether this trend reflects a permanent shift in the cost of capital or temporary inefficiencies related to the integration of the salty snacks segment.
According to recent quarterly filings, the cash conversion cycle has fluctuated significantly, reaching 75 days in 2025Q2 before settling at 31 days in 2026Q1, which highlights the company's sensitivity to seasonal inventory builds and the timing of trade promotions within its core confectionery business.
The volatility in the CCC suggests that management's control over working capital is heavily influenced by external seasonal factors rather than internal operational improvements. This inconsistency complicates the assessment of true cash-generating efficiency and may indicate that the company is carrying excess inventory to mitigate supply chain risks.
Based on reported figures, the company maintains a debt-to-equity ratio of 1.13 as of 2026Q1, which, while elevated compared to some peers, appears manageable given the interest coverage ratio of 12.86, suggesting that the firm is not currently facing immediate liquidity or refinancing risks.
While the leverage profile is stable, the fluctuation in the debt-to-EBITDA ratio indicates that earnings volatility remains the primary risk to the company's credit profile. The current debt structure appears adequate for the firm's operational needs, provided that management avoids further aggressive debt-funded acquisitions in the near term.
The P/E ratio is frequently misapplied to HSY, as it obscures the significant impact of non-recurring commodity hedging gains and seasonal inventory accounting, which often distort net income and lead to an inaccurate assessment of the company's underlying operational earning power.
Analysts should instead prioritize EV/EBITDA or free cash flow yield, as these metrics better account for the company's capital structure and the cash-intensive nature of its manufacturing operations. Relying solely on P/E ignores the volatility introduced by the company's heavy reliance on volatile commodity inputs like cocoa and sugar.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HSY stock.
The Hershey Company's current P/E ratio is 40.5x. The historical average is 26.8x. This places it at the 90th percentile of its historical range.
The Hershey Company's current EV/EBITDA is 27.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.4x.
The Hershey Company's return on equity (ROE) is 18.9%. The historical average is 52.5%.
Based on historical data, The Hershey Company is trading at a P/E of 40.5x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Hershey Company's current dividend yield is 3.03% with a payout ratio of 122.9%.
The Hershey Company has 33.3% gross margin and 12.1% operating margin. Operating margin between 10-20% is typical for established companies.
The Hershey Company's Debt/EBITDA ratio is 3.7x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.