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A Look At Mondelez International (MDLZ) Valuation After Recent Share Price Weakness

Simply Wall St · 5d ago

Mondelez International (MDLZ) is on investor watch after recent share price softness, with the stock showing negative returns over the past week, month, and past 3 months. This has prompted closer attention to its current fundamentals.

See our latest analysis for Mondelez International.

Zooming out, the recent 3 month share price return of 14.48% decline and 1 year total shareholder return of 6.68% decline suggest fading momentum, hinting that investors may be reassessing growth prospects and risk.

If Mondelez’s recent weakness has you thinking about portfolio balance, it could be a moment to broaden your watchlist with fast growing stocks with high insider ownership.

With Mondelez trading at $52.73 and estimates of intrinsic value and analyst targets pointing higher, the key question is whether recent weakness signals an undervalued snack giant or if the market is already pricing in future growth.

Most Popular Narrative Narrative: 23.4% Undervalued

The most followed narrative puts Mondelez’s fair value at US$68.85 per share versus the last close at US$52.73. This frames the recent pullback as a potential valuation gap to watch.

The analysts have a consensus price target of $74.417 for Mondelez International based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $88.0, and the most bearish reporting a price target of just $67.0.

Read the complete narrative.

Curious what justifies that higher fair value when revenue expectations trail the wider US market, yet earnings and margins are still projected to climb? The full narrative spells out how pricing power, cost efficiencies and future earnings multiples fit together to support this view.

Result: Fair Value of $68.85 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, softer volumes from price elasticity and weaker consumer confidence in key markets such as Brazil, Mexico, and China could still pressure revenue and margins.

Find out about the key risks to this Mondelez International narrative.

Build Your Own Mondelez International Narrative

If you see the story differently or prefer to test the assumptions yourself, you can build a data-driven view in minutes with Do it your way.

A great starting point for your Mondelez International research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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If you stop at Mondelez, you risk missing companies that better fit your goals, so take a few minutes to widen your opportunity set with focused screeners.

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.