Is Tyson Foods, Inc. (TSN) Fairly Valued?
Tyson Foods, Inc. valuation review using P/E, fair value, revenue growth, EPS growth, net margin, and TGMCharts chart exhibits as of July 9, 2026.
By TGMCharts Research · Data as of · Updated
The valuation of Tyson Foods, Inc. presents a divergence between a discount to the third-party DCF model and a high trailing earnings multiple. The stock trades at 44.74x trailing earnings against an analyst-DCF (FMP) benchmark of $77.28, meaning its ultimate valuation alignment hinges on whether underlying profitability can recover to support the price.
The core tension lies in the contrast between a top-line five-year CAGR of 5.15% and a five-year EPS CAGR of -20.68%. With net margin sitting at a thin 0.81%, the high earnings multiple reflects depressed trailing net income rather than an expensive growth story, while the price remains below the third-party fair value estimate.
- Tyson Foods, Inc. closed at $57.83 on July 9, 2026.
- Trailing P/E is 44.74x and price-to-sales is 0.37x.
- Analyst DCF (FMP) is $77.28 with margin of safety at 33.91%.
- Five-year revenue CAGR is 5.15% and five-year EPS CAGR is -20.68%.
- Earnings yield is 2.24% and net margin is 0.81%.
Valuation Setup
The market price, model anchor, growth support, and profitability facts behind the valuation read.
Assessing the Earnings Multiple Against Depressed Profitability
Analyzing the valuation of Tyson Foods, Inc. requires reconciling a high headline earnings multiple with a price that sits below third-party intrinsic value estimates. As of July 9, 2026, the equity closed at $57.83, carrying a trailing price-to-earnings ratio of 44.74x. This multiple must be evaluated alongside an analyst-DCF (FMP) reference price of $77.28, which yields a calculated margin of safety of 33.91%.
Because a single ratio rarely captures the full fundamental picture of a cyclical processor, this analysis cross-references the trailing multiple with long-term revenue growth, per-share earnings trends, and net margin health. When these fundamental vectors diverge, the valuation framework must weigh whether the market is pricing in a cyclical recovery or overestimating normalized earnings power.
The Market Price and Multiple Framework
To understand what market participants are paying for the business, we examine the price-to-sales ratio of 0.37x alongside an earnings yield of 2.24%. The low sales multiple suggests a low-margin, high-volume operational structure where minor shifts in operating profitability trigger outsized swings in the trailing P/E ratio. Evaluating these metrics together prevents a high trailing multiple from being misconstrued as a high-growth premium.
TSN P/E ratio Chart
The trailing earnings multiple is the main valuation exhibit because it connects the market price to reported earnings.
Latest P/E ratio: 44.74x as of July 9, 2026.
A P/E ratio of 44.74x has to be judged against the company's five-year EPS CAGR of -20.68%. If the multiple is high while EPS support is ordinary, the valuation thesis becomes more dependent on investor confidence than on fresh earnings power.
TSN price-to-sales Chart
Price-to-sales gives a second valuation lens when margins and earnings can move around the cycle.
Latest price-to-sales ratio: 0.37x.
Price-to-sales at 0.37x is most useful beside net margin of 0.81%. A richer sales multiple is easier to defend when margin quality is durable rather than temporarily elevated.
Comparing Market Price to the Analyst DCF Benchmark
The analyst-DCF (FMP) reference value of $77.28 stands as an external valuation anchor, placing the market price at a discount of 33.91%. This positive margin of safety indicates that independent cash flow models project a higher normalized earnings stream than the current market price implies. However, this benchmark represents third-party assumptions and should be compared directly against the scenario ranges on our dedicated DCF page, as actual operational cash flows can vary widely from these projections.
The valuation at a glance
Each input on its own line: what the stock costs against earnings and sales, the model's fair value and how far price sits from it, and the growth and margins behind the business.
TSN earnings yield Chart
Earnings yield reframes valuation from an owner's-yield perspective rather than a multiple perspective.
Latest earnings yield: 2.24%.
The earnings yield of 2.24% is the counterweight to the P/E ratio. If the yield is thin relative to the quality and growth profile, the valuation case needs more help from future compounding.
Diverging Top-Line Expansion and Per-Share Earnings Contraction
The operational support for the current valuation is mixed, characterized by a steady top-line expansion alongside a sharp decline in bottom-line profitability. Over the past five years, the company achieved a revenue CAGR of 5.15%, indicating sustained market demand and volume throughput. Conversely, the five-year EPS CAGR declined to -20.68%, demonstrating that rising input costs, operational friction, or cyclical margin pressure have severely eroded the earnings power behind each share.
TSN revenue
Revenue history tests whether the valuation is being supported by real business expansion.
Five-year revenue CAGR: 5.15%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Revenue growth is the business-expansion evidence behind the valuation read. A five-year revenue CAGR of 5.15% helps show how much of the valuation story is coming from company growth instead of only multiple expansion.
TSN EPS
EPS history checks whether reported earnings are keeping pace with the market multiple.
Five-year EPS CAGR: -20.68%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
A five-year EPS CAGR of -20.68% is the clearest support figure for a P/E-based conclusion. If EPS growth slows while the multiple remains elevated, the article should become more cautious after refresh.
Evaluating Net Profitability Against the Sales Multiple
The sustainability of the current valuation depends on whether the company can defend its thin net margin of 0.81%. When evaluated alongside the price-to-sales ratio of 0.37x, it becomes clear that even minor operational headwinds can eliminate net income entirely, causing the P/E ratio to spike. A low sales multiple is a typical characteristic of commodity-sensitive businesses, but it offers little protection if structurally low margins fail to recover toward historical averages.
TSN net margin
Net margin shows whether the company has enough profitability quality to support its valuation.
Net margin (TTM): 0.81%. The bars below are annual fiscal years.
Net margin of 0.81% is a quality signal, not a valuation verdict by itself. It matters because a premium multiple is more defensible when margins are structurally strong and less defensible when margins are peaking.
The Core Tension Between Asset Value and Earnings Power
The primary argument for a favorable valuation is that the market price trades at a discount to the analyst-DCF (FMP) fair value of $77.28, supported by a positive five-year revenue CAGR of 5.15%. This suggests that any normalization of the operating environment could unlock significant per-share value. Conversely, the bearish perspective highlights that a trailing P/E of 44.74x is highly demanding for a business experiencing a five-year EPS contraction of -20.68%, leaving little room for error if structural headwinds persist.
Bull and bear case
Valuation support
- Five-year revenue CAGR of 5.15% and five-year EPS CAGR of -20.68% support the business case.
- Net margin of 0.81% is the quality check behind the multiple.
Valuation pressure
- A P/E ratio of 44.74x can become demanding if EPS growth slows.
- The analyst-DCF (FMP) margin of safety at 33.91% should change the valuation read if it deteriorates after refresh.
Key Metrics to Monitor for a Shift in Valuation
The analytical view of this equity would shift if the market price moves closer to the analyst-DCF (FMP) reference price of $77.28, effectively erasing the current margin of safety. Additionally, a further deterioration in the five-year EPS CAGR of -20.68% or a downward trend in the net margin below 0.81% would signal that the current earnings multiple has become unsustainable. This analysis is updated daily to ensure all calculations reflect the most recent market closes and SEC filings.
Balanced Fundamental Outlook
In conclusion, a balanced reading of Tyson Foods, Inc. requires all core fundamental metrics to point toward operational stabilization. The discount to the analyst-DCF (FMP) reference model offers a theoretical cushion, but the high trailing P/E multiple and negative five-year EPS growth highlight the ongoing pressure on net profitability. This research note is compiled from verified, precomputed data and is intended solely as general financial context, not as personalized investment advice or a transaction recommendation.
FAQ
Is TSN fairly valued?
Tyson Foods, Inc. trades at 44.74x trailing earnings with an analyst-DCF (FMP) margin of safety of 33.91%. The cleanest read comes from comparing that valuation to five-year revenue CAGR of 5.15% and five-year EPS CAGR of -20.68%.
What valuation metric matters most for TSN?
This article anchors on P/E, fair value, margin of safety, price-to-sales, earnings yield, revenue growth, and EPS growth. No single metric is treated as a recommendation.
How often should this TSN valuation view refresh?
We refresh this note after each daily market close, so the price, fair value, and every figure stay current. Numbers here are as of July 9, 2026.
What would change our mind
- A change in the analyst-DCF (FMP) reference value from its current $77.28 level.
- A stabilization or further contraction in the five-year EPS CAGR of -20.68%.
- Any significant movement in the trailing net margin from the current 0.81% baseline.
The bottom line
Tyson Foods, Inc. valuation research note from TGMCharts Research, grounded in precomputed fundamentals, chart exhibits, and a frozen claim ledger.
Read next: TSN fundamentalsContinue with Tyson Foods, Inc.'s full stock page.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-05-04 · period 2026-03-28 · SEC EDGAR source
- “Overview General Sales grew 4%, or $579 million, in the second quarter of fiscal 2026, driven by increased sales across all segments.”
- “Sales grew 5%, or $1,269 million in the first six months of fiscal 2026, driven by increased sales in all segments.”
- “In the second quarter and first half of fiscal 2026, the Company increased the estimated pretax charges by $38 million and $178 million, respectively, for additional actions approved to date under the network optimization plan.”
- “Lower sales volume decreased cost of sales $288 million while higher input cost per pound increased cost of sales by $505 million.”
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Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.