The reasons for the fall include rising rates, which play an obvious gravitational role here - as explained below.

It's notable that Hershey has never traded at less than x15 earnings, including during the great crisis of 2008, the "flash crash" of 2018 or the pandemic of 2020. This, no doubt, is because the company remains of exceptional quality.

Annualized growth may be modest - 4.6% a year over the last decade - but operating margins are over 20% and, above all, return on capital is stratospheric.

Growth, it should be emphasized, stems essentially from two major acquisitions - Amplify Snack Brands in 2018 and Lily's in 2021 - opportunistically made at valuation lows in 2018 and 2021. The return on investment appears highly satisfactory.

But the most spectacular thing about Hershey is the extraordinary return on shareholders' equity, which hovers around 50%-60% despite limited use of leverage.

Since 2011, in an environment of low interest rates, the market has been willing to pay x17 for equity on average. In other words, at these valuation levels, it was willing to accept an expected return of between 3% and 3.5%.

With the risk-free rate now approaching 5%, this valuation has automatically adjusted downwards, and Hershey is now trading at x11 its equity, i.e. an expected yield of between 5% and 5.5%.

Is it better to own a ten-year US Treasury bond or a share in the great American chocolate maker, an astute and remarkably well-managed acquirer? In essence, this is the trade-off offered to investors at these price levels.

A further decline in valuation would undoubtedly represent an excellent investment opportunity.