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Fair Value for Hormel Foods (HRL)

See growth priced into Hormel Foods (HRL): reverse DCF, implied rate vs history and analysts, FCF view. Free intrinsic value calculator for education.

Fair value (multi-method)

Four independent methods triangulate what HRL is worth. The headline is the Forward-DCF intrinsic value at a normalized growth rate; the margin of safety compares it to the current price.

Estimated fair value (Forward DCF)

$7.13

Above fair value
-231.22% vs current price $23.62

Method range

$7.13 $35.46

median $17.66

Methods disagree

Valuation methods

Each method’s implied fair value per share and its upside versus the current price. Missing methods (no analyst coverage, negative earnings, etc.) are shown as “—”.

  • Forward DCF$7.13
  • Exit multiple$35.46
  • Analyst target$25.67
  • Graham number$9.64

Stock price

$23.62

FCF / share (TTM)

$0.18

3Y FCF CAGR

-8.9%

Fair value @ hist. growth

$1.92

This analysis is for informational purposes only and is not financial advice. Scenario prices and DCF-style figures depend on your assumptions and data from public filings and estimates. They are not forecasts of future returns.

Implied FCF growth

21.7%

per year over your projection horizon

Premium vs DCF

Margin of safety -1131.4% vs hist-growth DCF

Historical 3Y CAGR

-8.9%

Your model implies

21.7%

Analyst consensus is EPS-only — no comparable FCF / share estimate to show on this basis.

Model inputs

Move sliders to test how the reverse DCF reacts. Historical-growth markers show where the company has actually grown over the last cycle.

Discount rate (cost of equity proxy)6.1%
Terminal growth2.50%
Projection years10 yr
FCF growth per year (supplemental projection)-9%
3Y CAGR -9%

Undiscounted FCF per share over 10 years at -9% annual growth.

Sensitivity — implied growth vs your assumptions

Each cell shows the per-share growth rate the market would need to justify the current price at that combination of discount rate (rows) and terminal growth (columns). Your selected inputs are highlighted.

Row axis: discount rate. Column axis: terminal growth.Terminal g →↓ Discount1.5%2.0%2.5%3.0%3.5%
5.0%20.2%18.5%16.5%14.1%11.0%
5.1%20.6%19.0%17.1%14.8%11.9%
6.1%24.4%23.1%21.7%20.0%18.1%
7.1%27.7%26.6%25.5%24.2%22.7%
8.1%30.6%29.7%28.8%27.7%26.5%
Color≤ historical CAGRModerate premiumHigh premium (≥ 15pp above hist)Your inputs

Historical multiples

Each bar is the trailing five-year range (low left, high right). Filled portion runs from low to today; the dot marks today; the small tick marks the five-year median. Low, median, and high are listed under each bar.

P/EToday27.3· at high
5Y low20.8
Median25.3
5Y high27.3
P/SToday1.1· at low
5Y low1.1
Median1.5
5Y high2.0
EV/EBITDAToday15.2
5Y low13.7
Median15.2
5Y high18.8

Net debt

$2.2B

Total debt − cash

Beta

0.31

Vs market benchmark

Frequently asked questions