HRL Valuation

Hormel Foods Corp

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25.440

+0.22(0.872%)1D

Overview
Forecast
Valuation
Earnings

HRL Relative Valuation

HRL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HRL is overvalued; if below, it's undervalued.

Historical Valuation

Hormel Foods Corp (HRL) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.84 is considered Undervalued compared with the five-year average of 22.98. The fair price of Hormel Foods Corp (HRL) is between 32.36 to 41.65 according to relative valuation methord. Compared to the current price of 25.44 USD , Hormel Foods Corp is Undervalued By 21.38%.

Relative Value

Fair Zone

32.36-41.65

Current Price：25.44

21.38%

Undervalued

15.84

Trailing

Forward

11.08

EV/EBITDA

Hormel Foods Corp. (HRL) has a current EV/EBITDA of 11.08. The 5-year average EV/EBITDA is 15.71. The thresholds are as follows: Strongly Undervalued below 11.11, Undervalued between 11.11 and 13.41, Fairly Valued between 18.01 and 13.41, Overvalued between 18.01 and 20.31, and Strongly Overvalued above 20.31. The current Forward EV/EBITDA of 11.08 falls within the Strongly Undervalued range.

13.73

EV/EBIT

Hormel Foods Corp. (HRL) has a current EV/EBIT of 13.73. The 5-year average EV/EBIT is 18.99. The thresholds are as follows: Strongly Undervalued below 13.75, Undervalued between 13.75 and 16.37, Fairly Valued between 21.61 and 16.37, Overvalued between 21.61 and 24.23, and Strongly Overvalued above 24.23. The current Forward EV/EBIT of 13.73 falls within the Strongly Undervalued range.

1.12

Hormel Foods Corp. (HRL) has a current PS of 1.12. The 5-year average PS is 1.84. The thresholds are as follows: Strongly Undervalued below 1.05, Undervalued between 1.05 and 1.44, Fairly Valued between 2.23 and 1.44, Overvalued between 2.23 and 2.63, and Strongly Overvalued above 2.63. The current Forward PS of 1.12 falls within the Undervalued range.

13.02

P/OCF

Hormel Foods Corp. (HRL) has a current P/OCF of 13.02. The 5-year average P/OCF is 17.53. The thresholds are as follows: Strongly Undervalued below 11.19, Undervalued between 11.19 and 14.36, Fairly Valued between 20.70 and 14.36, Overvalued between 20.70 and 23.87, and Strongly Overvalued above 23.87. The current Forward P/OCF of 13.02 falls within the Undervalued range.

15.73

P/FCF

Hormel Foods Corp. (HRL) has a current P/FCF of 15.73. The 5-year average P/FCF is 24.13. The thresholds are as follows: Strongly Undervalued below 13.00, Undervalued between 13.00 and 18.57, Fairly Valued between 29.70 and 18.57, Overvalued between 29.70 and 35.27, and Strongly Overvalued above 35.27. The current Forward P/FCF of 15.73 falls within the Undervalued range.

Hormel Foods Corp (HRL) has a current Price-to-Book (P/B) ratio of 1.73. Compared to its 3-year average P/B ratio of 2.51 , the current P/B ratio is approximately -30.98% higher. Relative to its 5-year average P/B ratio of 3.03, the current P/B ratio is about -42.78% higher. Hormel Foods Corp (HRL) has a Forward Free Cash Flow (FCF) yield of approximately 4.53%. Compared to its 3-year average FCF yield of 4.51%, the current FCF yield is approximately 0.27% lower. Relative to its 5-year average FCF yield of 3.88% , the current FCF yield is about 16.56% lower.

1.73

P/B

Median3y

2.51

Median5y

3.03

4.53

FCF Yield

Median3y

4.51

Median5y

3.88

Competitors Valuation Multiple

The average P/S ratio for HRL's competitors is 1.08, providing a benchmark for relative valuation. Hormel Foods Corp Corp (HRL) exhibits a P/S ratio of 1.12, which is 3.46% above the industry average. Given its robust revenue growth of 4.64%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of HRL decreased by 19.59% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.90B to 3.03B.

The secondary factor is the Margin Expansion, contributed -0.66%to the performance.

Overall, the performance of HRL in the past 1 year is driven by Revenue Growth. Which is more sustainable.

4.64%

2.90B → 3.03B

Revenue Growth

-0.66%

6.10 → 6.06

Margin Expansion

-23.57%

24.30 → 18.57

P/E Change

-19.59%