Identifying Comparables for Valuation Which would be a better comparable to use in valuing Hershey Co. using a PE ratio-based multiple:

Synutra International Inc., Hillshire Brands, or Hormel Foods Corp.? Explain your answer without reference to the actual PE ratios.

Company Estimated Earnings Growth ROE Debt-to-

Equity Forward PE Hershey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.8% 66.82% 1.41 23.21 Synutra Intl . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2% 1.68% 7.72 14.00 Hillshire Brands . . . . . . . . . . . . . . . . . . . . . . . . . 13.9% 40.90% 1.93 17.57 Hormel Foods. . . . . . . . . . . . . . . . . . . . . . . . . . . 10.6% 17.26% 0.08 17.91