Tyson Foods

Methodology

Tyson Foods' fair value calculation is challenging due to the cyclical nature of protein markets, where cattle, hog, and poultry prices create volatile margin swings unrelated to the company's operational execution. The method works best when applied to normalized mid-cycle earnings, as peak and trough periods driven by commodity cycles create misleading valuation signals. Investors should also consider that pricing power varies significantly across Tyson's retail branded, foodservice, and commodity protein segments.

Methodology

PEG ratios for Tyson can be highly misleading because growth rates fluctuate dramatically with livestock cycles, input cost inflation, and demand shifts between protein categories. Low PEG ratios during margin expansion may signal peak earnings rather than value, while high ratios during margin compression may indicate opportunity as cycles turn. Investors should normalize earnings for mid-cycle margins and compare Tyson's PEG to historical ranges rather than taking current ratios at face value.

Methodology

Tyson pays a meaningful dividend, so PEGY provides some valuation support during cyclical downturns when earnings compress and PEG analysis becomes unreliable or turns negative. The dividend offers tangible return while investors wait for margins to recover through normal commodity cycle progression. For income-focused investors, PEGY captures both the yield and potential upside from mean reversion in protein margins over time.