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Nestle SA
SIX:NESN

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Nestle SA
SIX:NESN
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Price: 78.84 CHF -0.58%
Market Cap: CHf203.1B

EV/GP

6
Current
8%
Cheaper
vs 3-y average of 6.5

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
6
=
Enterprise Value
CHf241.6B
/
Gross Profit
CHf40.8B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
6
=
Enterprise Value
CHf241.6B
/
Gross Profit
CHf40.8B

Valuation Scenarios

Nestle SA is trading below its 3-year average

If EV/GP returns to its 3-Year Average (6.5), the stock would be worth CHf85.59 (9% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-18%
Maximum Upside
+19%
Average Upside
1%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 6 CHf78.84
0%
3-Year Average 6.5 CHf85.59
+9%
5-Year Average 7.1 CHf93.85
+19%
Industry Average 5.5 CHf73.02
-7%
Country Average 4.9 CHf64.72
-18%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
CH
Nestle SA
SIX:NESN
204B CHF 6 22.5
JP
Goyo Foods Industry Co Ltd
TSE:2230
53.2T JPY 70 536.4 540 752.8
US
Mondelez International Inc
NASDAQ:MDLZ
78.2B USD 8.8 32.2
FR
Danone SA
PAR:BN
42.3B EUR 3.5 23.5
ZA
Tiger Brands Ltd
JSE:TBS
47.9B ZAR 4 12.6
US
Hershey Co
NYSE:HSY
38.4B USD 10.6 42.8
CN
Muyuan Foods Co Ltd
SZSE:002714
243.7B CNY 14.5 25
CN
Foshan Haitian Flavouring and Food Co Ltd
SSE:603288
229.4B CNY 16.8 32.6
ZA
Avi Ltd
JSE:AVI
32.7B ZAR 4.6 12.7
JP
Ajinomoto Co Inc
TSE:2802
4.9T JPY 9.1 63.2
IN
Nestle India Ltd
NSE:NESTLEIND
2.8T INR 21.8 80

Market Distribution

In line with most companies in Switzerland
Percentile
57th
Based on 878 companies
57th percentile
6
Low
0 — 2.5
Typical Range
2.5 — 8.3
High
8.3 —
Distribution Statistics
Switzerland
Min 0
30th Percentile 2.5
Median 4.9
70th Percentile 8.3
Max 378.3

Nestle SA
Glance View

Nestlé SA, an iconic behemoth in the global food and beverage industry, weaves a vast tapestry that stretches across continents, touching millions of lives every day. Founded in 1866 by the enterpreniating German-born pharmacist Henri Nestlé, the company began with the creation of a breakthrough infant food that combined cow's milk, wheat flour, and sugar. This innovative product not only saved the lives of many infants but also laid the foundation for a legacy built on nutrition, health, and wellness. Over the decades, Nestlé expanded its portfolio substantially, making strategic acquisitions and diversifying into multiple categories such as dairy, confectionery, beverages, and even pet care. Today, it boasts a stable of well-known brands like Nescafé, KitKat, Purina, and Gerber among its wide-ranging offerings, and operates in nearly every country around the world. Nestlé's business model is as dynamic as the products it champions, operating an intricate supply chain with tentacles that reach from farmlands to factory floors, ensuring both the quality and consistency that its consumers trust. The company's ability to innovate in product development, invest in technology, and adapt to consumer demands for healthier, more sustainable options plays a crucial role in maintaining its competitive edge. It generates revenue primarily through the sale of its diverse product range to retailers, which then reaches end consumers across a multitude of channels. Additionally, Nestlé strategically invests in local operations—customizing products to meet regional tastes while leveraging scale efficiencies. Through constant reinvention and a keen awareness of evolving global food trends, Nestlé continues to solidify its position at the forefront of consumer goods industries, consistently delivering value to its shareholders.

NESN Intrinsic Value
104.81 CHF
Undervaluation 25%
Intrinsic Value
Price CHf78.84
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