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• Wondering if Mondelez International is a hidden gem or already fully priced? Here is a closer look at what makes this stock worth considering.

• The shares have declined 8.7% over the last year, while a modest 1.0% gain in the last week points to a potential shift in sentiment or a period of stability.

• Recent headlines have highlighted Mondelez’s strategic investments in emerging markets and ongoing sustainability initiatives, indicating that management is actively pursuing new opportunities. These developments are leading to renewed analyst interest and are helping to shape investor expectations regarding growth and long-term risk.

• According to our valuation analysis, Mondelez scores a 4 out of 6 for being undervalued. This suggests it outperforms many of its peers, though it may not be the clear bargain that some investors seek. Before relying only on traditional valuation metrics, it is useful to review the company’s strengths, areas for improvement, and smarter approaches to identifying value, which will be discussed later in this article.

Mondelez International delivered -8.7% returns over the last year. See how this stacks up to the rest of the Food industry.

A Discounted Cash Flow (DCF) model estimates the fair value of a company by projecting its future free cash flows and discounting them back to today’s dollars. This approach helps investors determine whether a stock is undervalued or overvalued based on the business’s ability to generate cash over time.

For Mondelez International, the DCF analysis uses a 2 Stage Free Cash Flow to Equity model. The company’s latest twelve months free cash flow stands at $2.31 billion. Analyst expectations suggest that free cash flow will steadily rise over the next decade, reaching $4.94 billion by the end of 2028. Further out, projections continue to show moderate growth, with discounted values indicating a consistent upward trend.

Based on these forecasts, the estimated intrinsic value for Mondelez International shares is $113.95. This represents a 49.5% discount to the current market price, signaling that the stock may be significantly undervalued according to this model.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Mondelez International is undervalued by 49.5%. Track this in your watchlist or portfolio, or discover 920 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Mondelez International.

The Price-to-Earnings (PE) ratio is a widely used metric for valuing companies that are solidly profitable, like Mondelez International. It tells investors how much they are paying for each dollar of earnings and is especially meaningful for established companies with strong and consistent profits.

What counts as a “normal” or “fair” PE ratio can vary. Faster-growing companies or those carrying lower risk often command higher multiples, while slower growth or greater uncertainty can bring the valuation down. Comparing these multiples to industry averages gives some context, but it is just the starting point.

Currently, Mondelez trades on a PE ratio of 21.0x, directly in line with the Food industry average of 21.0x and just above the peer group’s 20.7x. Simply Wall St’s Fair Ratio, a proprietary measure that considers factors such as Mondelez’s earnings growth, profit margins, market cap, industry trends, and company-specific risks, currently stands at 22.1x. This offers a more tailored benchmark, reducing much of the “noise” found when only comparing peers or the broad industry.

Since Mondelez’s PE ratio of 21.0x is very close to its Fair Ratio of 22.1x, the stock appears to be fairly valued based on this approach.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1443 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation. Let’s introduce you to Narratives. A Narrative is an investment story that connects your expectations about a company, such as its future revenue, profit margins, and fair value, directly to its real-world outlook. Narratives allow you to explain your view on what drives Mondelez International’s value, turning raw financial numbers into a living forecast rooted in your own perspective. Narratives on Simply Wall St’s Community page make this easy and accessible for everyone, whether you are new or experienced, by providing a space for millions of investors to share and refine their outlooks.

Using Narratives, you can make clearer buy or sell decisions by instantly comparing your calculated Fair Value to today’s share price. Because these Narratives auto-update with major news, earnings, or industry changes, they stay relevant in real time. For example, one investor might expect Mondelez’s global pricing strategy and emerging market growth to support a fair value as high as $88.00, while a more cautious investor could see risks in commodity costs and set their narrative at $67.00. Narratives empower you to back up your own investment decisions with transparent, dynamic forecasts that reflect both what you believe and what is happening in the market.

Do you think there’s more to the story for Mondelez International? Head over to our Community to see what others are saying!

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 MDLZ.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Story Continues

The Price-to-Earnings (PE) ratio is a widely used metric for valuing profitable companies because it directly relates a company’s market value to its earnings. For companies generating consistent profits like Brookfield Asset Management, the PE ratio helps investors gauge how much they are paying for each dollar of earnings. This makes it easier to compare businesses of different sizes.

Growth expectations and perceived risks play a big role in shaping what counts as a “normal” or “fair” PE ratio. Companies expected to grow faster usually command higher multiples, while those exposed to greater risks or market uncertainty tend to trade at lower multiples. These benchmarks help contextualize a company’s valuation in relation to its peers and the broader industry.

Brookfield Asset Management currently trades at a PE ratio of 32.5x. This is well above the Capital Markets industry average of 8.7x and still below the average of its peer group at 50.1x. To provide a more tailored view, Simply Wall St calculates a Fair Ratio of 27.9x for Brookfield Asset Management, which factors in its growth outlook, margins, risks, business model, and market cap. Unlike basic peer or industry comparisons, this Fair Ratio is a dynamic measure that aims to reflect what the market should reasonably pay for the stock given all these important variables.

Currently, Brookfield Asset Management’s actual PE ratio is only about 4.6x above its Fair Ratio, suggesting the stock is moderately overvalued by this method.

Result: OVERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1443 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. Narratives are simply your personal story or perspective behind a company, connecting your fair value and estimates for future revenue, earnings, and margins to real financial decisions. Think of them as an easy way to link your outlook on Brookfield Asset Management’s business to a forecast and a target price you believe in.

Narratives make investing more approachable and dynamic by turning company data into a living story. You can build and share these stories with others directly on Simply Wall St’s Community page, which is used by millions of investors. As new information emerges, such as news headlines or quarterly results, Narratives automatically update so your investment thesis stays fresh and relevant.

This approach empowers you to decide when to buy or sell by comparing your Fair Value Narrative against the current market Price. For example, one Brookfield Asset Management Narrative might forecast rapid global expansion and assign a high fair value, while another Narrative may anticipate regulatory headwinds and set a more conservative valuation. Narratives let you see and act on these differences, making investment decisions more personal, contextual, and actionable.

Do you think there’s more to the story for Brookfield Asset Management? Head over to our Community to see what others are saying!

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 BAM.TO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com