Green Mountain Coffee Roasters, Inc. Stock Valuation Critique Green Mountain Coffee Roasters, Inc. Has implemented many strategies over its business life span, some that have contributed, and some that have reduced its value. As we commenced the stock valuation critique, we examined Smog’s earnings for the past twelve months. Their earnings appear to have doubled from the previous year. This seems to be substantially successful for a coffee business industry, especially with the tendency of variations in sales and earnings.
However earnings lone do not account for a company’s entire worth. Solely looking at the actual stock price of the company will not give an accurate value due to other factors such as the size of the company. We compared the price per earnings ratio for CACM to many of its competitors and the industry average. As of August 6, 2012 their PIE ratio was 9. 90 compared to the industry of coffee manufacturing and packaging goods which was 47. 60. This is significantly low which drew parallel to its competitor comparison. Pets PIE ratio was 69. 18 and Struck fell in at 25.