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Is the Tate amp;amp; Lyle share price good value at 729.8p?

Jack Brumby

Tate & Lyle (LON:TATE) is a large cap provider of ingredients and solutions to the food, beverage and other industries. The Company operates primarily in two industries: corn wet milling and sweeteners, and its brands include DOLCIA PRIMA Allulose, PUREFRUIT Monk Fruit Extract, TASTEVA Stevia Sweetener, CLARIA Functional Clean-Label Starches, PROMITOR Soluble Fibre, PromOat Beta Glucan and SODA-LO Salt Microspheres.

Right now the Tate & Lyle share price appears to represent reasonable value, as shown in the group's Value Rank of 54. Let's explore this in more detail.


Digging into Tate & Lyle's Value Rank

Looking at Tate & Lyle's StockReport, we can see that the group has a:

  • Rolling price to book value of 2.32,
  • Trailing twelve month price to earnings ratio of 11.9
  • Trailing twelve month price to free cashflow of 17.3
  • Rolling dividend yield of 4.04%
  • Trailing twelve-month price to sales ratio of 1.25

This combination of financial traits suggests that, while Tate & Lyle stock is not the cheapest, it is far from expensive at these levels and is worth considering - especially if it is exposed to other positive stock market factors as well.

Studies indicate that combining factors such as Value, Quality and Momentum is a more effective way of outperforming the market over longer time frames. That's why we have constructed our StockReports to give an instant impression of how well exposed Tate & Lyle (LON:TATE) is to these three factors. We go into greater detail on factor investing in this video

Stockopedia helps you to identify return-enhancing factors such as Quality, Value and Momentum by analysing thousands of data points every day. To find out more about you find investment opportunities and analyse your portfolios then take one of our two-week free trials and have a look around.