• If you are wondering whether Fresh Del Monte Produce at around US$37.30 still offers value, it helps to look past the headline price and focus on what the market is actually paying for its cash flows and assets.
• The stock has returned 2.0% over the last 7 days, 5.6% year to date and 21.9% over the past year, with a 51.8% return over 3 years and 72.5% over 5 years. This gives useful context before weighing up what that current price might imply.
• Recent coverage has focused on Fresh Del Monte Produce as a global fresh food supplier, highlighting ongoing interest in how it manages costs, supply chains and branded produce in a competitive market. These themes often feed directly into how investors think about the sustainability of earnings and the level of risk they are pricing into the shares.
• Our valuation checks give Fresh Del Monte Produce a 4 out of 6 score. This sets up a closer look at how different methods like discounted cash flow, multiples and asset based measures stack up, and why there might be an even better way to frame valuation by the end of this article.

Approach 1: Fresh Del Monte Produce Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a company could be worth today by projecting its future cash flows and discounting them back to the present.

For Fresh Del Monte Produce, the model uses a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $177.1 million. Analysts provide an explicit forecast of $130 million for 2026, and further annual free cash flow projections out to 2035 are extrapolated by Simply Wall St from that base, with each future cash flow discounted back to today.

Adding up these discounted cash flows and a terminal value gives an estimated intrinsic value of about $66.36 per share. With the current share price around $37.30, the DCF implies the stock is trading at roughly a 43.8% discount to this estimate. This indicates that the market price is well below the modelled cash flow value.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Fresh Del Monte Produce is undervalued by 43.8%. Track this in your watchlist or portfolio, or discover 877 more undervalued stocks based on cash flows.

Approach 2: Fresh Del Monte Produce Price vs Earnings

For a profitable company like Fresh Del Monte Produce, the P/E ratio is a useful way to relate what you pay per share to the earnings that each share produces. In general, investors tend to accept a higher P/E when they expect stronger earnings growth or see lower risk, and a lower P/E when growth expectations are more modest or risks are higher.

Fresh Del Monte Produce currently trades on a P/E of 22.50x. That sits close to the Food industry average of about 21.36x and well below the peer group average of 39.99x, which suggests the market is attaching a lower earnings multiple to the company than many peers.

Simply Wall St’s Fair Ratio for Fresh Del Monte Produce is 49.13x. This is a proprietary estimate of the P/E multiple that might be appropriate given factors such as earnings growth characteristics, industry, profit margins, market cap and company specific risks. Because it blends these inputs, the Fair Ratio can be a more tailored benchmark than a simple industry or peer comparison. Set against the current 22.50x, the Fair Ratio points to the shares trading below this model based earnings multiple estimate.

Result: UNDERVALUED

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1448 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Fresh Del Monte Produce Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives.

A Narrative is simply your story about a company linked directly to your numbers, such as what you think is a fair value and how you expect revenue, earnings and margins to develop over time.

On Simply Wall St, within the Community page used by millions of investors, Narratives help you connect that story to a full financial forecast and a fair value estimate, then compare it with the current share price so you can judge whether the stock looks expensive or attractive on your terms.

Because Narratives update automatically when new information like earnings or news is released, your view on Fresh Del Monte Produce can adjust in real time. One investor might build a Narrative that expects stronger margins and a higher fair value, while another assumes more modest growth and a lower fair value. Both investors can use the same tool but apply different perspectives.

Do you think there's more to the story for Fresh Del Monte Produce? 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.