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 16.20 is considered Undervalued compared with the five-year average of 22.50. The fair price of Hormel Foods Corp (HRL) is between 28.04 to 35.68 according to relative valuation methord. Compared to the current price of 22.03 USD , Hormel Foods Corp is Undervalued By 21.42%.
Relative Value
Fair Zone
28.04-35.68
Current Price：22.03
21.42%
Undervalued
16.20
PE
1Y
3Y
5Y
Trailing
Forward
11.37
EV/EBITDA
Hormel Foods Corp. (HRL) has a current EV/EBITDA of 11.37. The 5-year average EV/EBITDA is 15.49. The thresholds are as follows: Strongly Undervalued below 11.01, Undervalued between 11.01 and 13.25, Fairly Valued between 17.73 and 13.25, Overvalued between 17.73 and 19.97, and Strongly Overvalued above 19.97. The current Forward EV/EBITDA of 11.37 falls within the Undervalued range.
14.33
EV/EBIT
Hormel Foods Corp. (HRL) has a current EV/EBIT of 14.33. The 5-year average EV/EBIT is 18.78. The thresholds are as follows: Strongly Undervalued below 13.55, Undervalued between 13.55 and 16.17, Fairly Valued between 21.40 and 16.17, Overvalued between 21.40 and 24.01, and Strongly Overvalued above 24.01. The current Forward EV/EBIT of 14.33 falls within the Undervalued range.
22.03
PS
Hormel Foods Corp. (HRL) has a current PS of 22.03. The 5-year average PS is 1.94. The thresholds are as follows: Strongly Undervalued below -1.56, Undervalued between -1.56 and 0.19, Fairly Valued between 3.68 and 0.19, Overvalued between 3.68 and 5.43, and Strongly Overvalued above 5.43. The current Forward PS of 22.03 falls within the Strongly Overvalued range.
10.12
P/OCF
Hormel Foods Corp. (HRL) has a current P/OCF of 10.12. The 5-year average P/OCF is 17.15. The thresholds are as follows: Strongly Undervalued below 10.73, Undervalued between 10.73 and 13.94, Fairly Valued between 20.36 and 13.94, Overvalued between 20.36 and 23.58, and Strongly Overvalued above 23.58. The current Forward P/OCF of 10.12 falls within the Strongly Undervalued range.
15.70
P/FCF
Hormel Foods Corp. (HRL) has a current P/FCF of 15.70. The 5-year average P/FCF is 23.58. The thresholds are as follows: Strongly Undervalued below 13.26, Undervalued between 13.26 and 18.42, Fairly Valued between 28.74 and 18.42, Overvalued between 28.74 and 33.90, and Strongly Overvalued above 33.90. The current Forward P/FCF of 15.70 falls within the Undervalued range.
Hormel Foods Corp (HRL) has a current Price-to-Book (P/B) ratio of 1.50. Compared to its 3-year average P/B ratio of 2.39 , the current P/B ratio is approximately -37.21% higher. Relative to its 5-year average P/B ratio of 2.92, the current P/B ratio is about -48.71% higher. Hormel Foods Corp (HRL) has a Forward Free Cash Flow (FCF) yield of approximately 0.05%. Compared to its 3-year average FCF yield of 4.56%, the current FCF yield is approximately -98.86% lower. Relative to its 5-year average FCF yield of 3.94% , the current FCF yield is about -98.69% lower.
1.50
P/B
Median3y
2.39
Median5y
2.92
5.18
FCF Yield
Median3y
4.56
Median5y
3.94
Competitors Valuation Multiple
The average P/S ratio for HRL's competitors is 33.33, providing a benchmark for relative valuation. Hormel Foods Corp Corp (HRL) exhibits a P/S ratio of 22.03, which is -33.89% 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
1Y
3Y
5Y
Market capitalization of HRL decreased by 30.74% 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.
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FAQ
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