Is Conagra Brands a Hidden Opportunity After a 35% Share Price Slump in 2025?

• If you have been wondering whether Conagra Brands is a bargain or a value trap at around $17.75, you are not alone. This breakdown is designed to give you a clear, no jargon answer.
• The stock has bounced about 4.1% over the last week and 1.7% over the last month, but those short term gains are set against a much steeper slide of 35.9% year to date and 32.7% over the last year.
• Investors have been reacting to shifting sentiment around packaged food demand and input costs. Defensive staples like Conagra have seen less attention as markets rotate into higher growth names. At the same time, headlines about changing consumer preferences, private label competition and margin pressures have kept a lid on enthusiasm even when the broader market rallies.
• Despite that backdrop, Conagra still scores a solid 5 out of 6 on our valuation checks, suggesting the market may be overlooking some value here. Next we will walk through the main valuation approaches behind that score, then finish with a more complete way to think about what Conagra is really worth.

Find out why Conagra Brands's -32.7% return over the last year is lagging behind its peers.

Approach 1: Conagra Brands Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a company is worth by projecting the cash it is expected to generate in the future and discounting those cash flows back to today in dollar terms.

For Conagra Brands, the latest twelve months Free Cash Flow is about $1.17 billion. Analysts provide detailed forecasts for the next few years, and Simply Wall St then extrapolates those out over a longer horizon using a 2 Stage Free Cash Flow to Equity model. Under this framework, Conagra’s Free Cash Flow is projected to grow to roughly $1.93 billion by 2035, reflecting steady, moderate growth from today’s levels.

When all those future cash flows are discounted back to today, the model arrives at an estimated intrinsic value of $73.65 per share. Compared with the current share price around $17.75, the DCF suggests the stock is about 75.9% undervalued, which indicates that the market is pricing in a much weaker future than these cash flow projections assume.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Conagra Brands is undervalued by 75.9%. Track this in your watchlist or portfolio, or discover 908 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Conagra Brands.

Approach 2: Conagra Brands Price vs Earnings

For a mature, consistently profitable business like Conagra Brands, the Price to Earnings ratio is a straightforward way to judge value, because it links the share price directly to the profits each share is generating today.

What counts as a reasonable PE depends on how quickly earnings are expected to grow and how risky those earnings are. Faster growth and lower risk usually justify a higher multiple, while slower growth or more uncertainty should mean a lower one. Conagra currently trades on about 9.99x earnings, which is well below the broader Food industry average of roughly 20.22x and also under the peer group average of about 15.25x.

Simply Wall St’s Fair Ratio takes this a step further. It estimates what PE Conagra should trade on, around 16.40x, based on its specific mix of earnings growth, profit margins, risk profile, industry and company size. That makes it a more tailored benchmark than simply lining Conagra up against generic peers. With the Fair Ratio notably above the current 9.99x, this lens points to the market pricing Conagra at a discount relative to its fundamentals.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1445 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Conagra Brands Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Conagra Brands to a clear set of numbers.

A Narrative is your story about the company, captured as assumptions about its future revenue, earnings, margins and ultimately what you think its fair value should be, rather than just accepting a single static price target.

On Simply Wall St, Narratives live in the Community page, where millions of investors use them to link a company’s story to a financial forecast and then to a fair value estimate that can be compared directly to today’s share price to help inform a decision.

Because Narratives update dynamically as new information comes in, such as earnings results or news on share repurchases, your fair value view can evolve without you needing to rebuild a model from scratch each time.

For example, one Conagra Narrative might assume earnings hold near $1.0 billion and justify a fair value closer to $26 per share. A more cautious Narrative could lean towards earnings nearer $558 million and a fair value around $18. Both perspectives can be explored side by side on the platform.

Do you think there's more to the story for Conagra Brands? 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.

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