Ever wondered if Primo Brands is genuinely undervalued, or if there’s something the market knows that you don’t? If you’re after more than just hype, you’re in the right place.
The stock has had quite a ride lately, up 2.3% this week, but still down 30.7% over the last month and nearly 50% year-to-date. That kind of movement is bound to spark questions about long-term value and shifting market sentiment.
Recent headlines have focused on major industry partnerships and strategic investments that could reshape Primo Brands’ growth trajectory. These moves have fueled discussions about new market opportunities and raised the stakes for what investors expect next.
Primo Brands currently scores a 5 out of 6 on our valuation checks, signaling it’s undervalued in nearly every area we monitor. Before we dive into those different valuation methods, stick around for an even more insightful way to approach valuation later in the article.
Find out why Primo Brands’s -44.4% return over the last year is lagging behind its peers.
A Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by forecasting its future cash flows and discounting them back to today’s value. This approach helps investors understand what a business is worth based on its ability to generate cash in the years ahead.
For Primo Brands, the DCF uses a 2 Stage Free Cash Flow to Equity model. The company reported $275.3 million in Free Cash Flow over the last twelve months. Analysts provide projected cash flows up to 2029, when estimates reach $1,080.5 million. Beyond analysts’ projections, future cash flows are extrapolated, resulting in a projected 10-year Free Cash Flow of $1.31 billion by 2035.
When discounted back to present value, these cash flows yield an estimated intrinsic value of $71.46 per share. With the stock currently trading at a 78.1% discount to this intrinsic value, Primo Brands appears significantly undervalued based on DCF analysis.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Primo Brands is undervalued by 78.1%. Track this in your watchlist or portfolio, or discover 926 more undervalued stocks based on cash flows.
PRMB Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Primo Brands.
The Price-to-Sales (P/S) ratio is a useful measure for valuing companies, especially those where earnings may not fully capture the underlying business potential or are impacted by recent investments and changes. For profitable companies like Primo Brands, the P/S metric offers valuable insight because it connects market value directly to top-line revenue, giving investors a clearer sense of sales-driven valuation, regardless of short-term profit swings.
Growth expectations and company risk both influence what investors consider a fair or normal P/S ratio. Businesses with stronger growth prospects or lower risk profiles often justify higher P/S multiples. Slower growers or riskier firms typically trade at lower multiples.
Currently, Primo Brands trades at a P/S ratio of 0.89x. This is significantly lower than both the beverage industry average of 2.27x and the peer group’s average of 3.66x.
Simply Wall St’s proprietary “Fair Ratio” goes beyond simple averages and provides a tailored benchmark based on factors such as Primo Brands’ growth outlook, risk profile, profit margin, industry, and market capitalization. For Primo Brands, the Fair Ratio is calculated at 1.05x. This is a more holistic, company-specific measure and can offer a more relevant benchmark than broad industry or peer comparisons since it incorporates the nuances that matter most to investors.
With Primo Brands’ actual P/S ratio at 0.89x and the Fair Ratio at 1.05x, the difference suggests the stock is somewhat undervalued according to this approach.
Result: UNDERVALUED
NYSE:PRMB PS Ratio as at Nov 2025
PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1434 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply your story behind the numbers. It is your personal perspective on where a company is headed, based on your assumptions about its future revenue, earnings, and margins. Narratives connect what you believe about a business with financial forecasts and translate your story into an estimated fair value for the stock.
On Simply Wall St’s Community page, investors can easily build and share Narratives in just a few minutes. This is an accessible, dynamic tool trusted by millions. Comparing your Narrative’s fair value to the current share price can help you decide whether it is time to buy or sell, bringing your conviction to real investment actions.
Narratives are continuously updated as news or fresh earnings reports emerge, keeping your view aligned with the latest information. For example, one investor might see Primo Brands as worth $45 per share due to caution about growth, while another’s Narrative values it at $75 based on optimism about new partnerships. Narratives let you bring your own outlook into the investing process and join the community conversation with confidence.
Do you think there’s more to the story for Primo Brands? Head over to our Community to see what others are saying!
NYSE:PRMB Community Fair Values as at Nov 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PRMB.
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