Treehouse Foods Inc

THS: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$74.00	Vswt	Dvrlygcy

TreeHouse Foods: Reinitiating Coverage With No-Moat Rating; Shares Fairly Valued

Kristoffer Inton

Mar 18, 2024

We’re reinitiating coverage of private-label food producer TreeHouse Foods, with a fair value estimate of $34 per share and a no-moat rating. Our valuation implies about 7.5 times enterprise value/adjusted EBITDA and 33 times price/adjusted earnings off our 2024 estimates. We think shares are fairly valued. For packaged-food exposure, narrow-moat General Mills looks undervalued, at a 13% discount to our valuation.

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