Lamb Weston Fair Value
LW
The fair market value of LW stock is 135.13 USD. Relative to the market price of 65.61 USD Lamb Weston Holdings is undervalued by 106%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Lamb Weston Valuation
Current LW share ticker price is 65.61 USD.
The fair value level of 135.13 USD can be considered as an effective entry point for long-term investors to start investing in LW stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 106% lower its fair value
Current price is 13% lower its minimum value
Current price is 212% lower its maximum value
Market price:
LW stock is greatly undervalued
It means the current price may concern as a Low Risk Entry Point
Lamb Weston Holdings Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
40.88
2
Median P/E over 5 years
27
3
Minimum P/E over 5 years
14.85
4
Earning per share (last 12 months)
5 USD
Maximum value
1
x
4
=
204.58 USD
Fair value
2
x
4
=
135.13 USD
Minimum value
3
x
4
=
74.29 USD
Lamb Weston Holdings Inc price metrics
-2.6
Annual return (geometric mean)
40.3
Risk (standard deviation) of returns
β
0.7
Beta (volatility compared to market)