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Strategies & Market Trends : Value Investing

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From: Harshu Vyas	11/15/2024 6:43:16 PM
	Read Replies (2) of 78682

Wonder how the thread goes about valuing a global staple like HSY - Hershey's? It's a stock I want to own but I'm struggling to work out what it's worth - do you guys think the stock is cheap at 20x earnings, 20x forward earnings? I suppose you could use a DCF as a guide but my problem is I start to plug in the numbers I want to see (making it useless). I think the company and its brands will be around for a long time... long after even I'm dead. And despite current concerns (i.e woke, ingredients in the chocolate...), I think people will continue to consume and love chocolate. If you think about it like that (with ROA exceeding 10% annually) it seems reasonable or even a decent deal. But paying 20x earnings when the stock is unpopular... I don't know. Maybe this is one of those moments where you need to use a tracking position and gradually go into it? Or is it better to be patient and just wait for lower (and more obviously cheap) multiples? I could be looking at this totally the wrong way. Have never really given these types of companies much thought. Thanks!

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