HRL
Hormel Foods Corporation (HRL)
Last Price$29.53.0%
Market Cap$15.8B
DCF value
$24.0
Overvalued (DCF value)
(18.4%)
Discount Rate
7.4%
Long-Term Growth Rate
2.0%
Stock quality
5/10
Good

HRL DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Oct'20 ActualOct'21 ActualOct'22 ActualOct'23 ActualOct'24 ActualOct'25 EstimateOct'26 EstimateOct'27 EstimateOct'28 EstimateOct'29 EstimateOct'30 EstimateOct'31 EstimateOct'32 EstimateOct'33 EstimateOct'34 EstimateOct'35 Terminal
% growth
9,608.5
1.2%
11,386.2
18.5%
12,458.8
9.4%
12,110.0
(2.8%)
11,920.8
(1.6%)
12,062.0
1.2%
12,306.0
2.0%
12,493.4
1.5%
12,691.1
1.6%
12,899.5
1.6%
13,119.0
1.7%
13,350.0
1.8%
13,593.1
1.8%
13,848.8
1.9%
14,117.5
1.9%
14,399.8
2.0%
1,100.2
11.5%
1,122.6
9.9%
1,312.6
10.5%
1,072.0
8.9%
1,067.9
9.0%
1,225.5
10.2%
1,250.3
10.2%
1,269.4
10.2%
1,289.5
10.2%
1,310.6
10.2%
1,332.9
10.2%
1,356.4
10.2%
1,381.1
10.2%
1,407.1
10.2%
1,434.4
10.2%
1,463.1
10.2%
NOPAT
% effective tax rate
896.5
9.3%
906.3
8.0%
1,027.2
8.2%
838.7
6.9%
829.9
7.0%
952.4
7.9%
971.6
7.9%
986.4
7.9%
1,002.0
7.9%
1,018.5
7.9%
1,035.8
7.9%
1,054.1
7.9%
1,073.3
7.9%
1,093.4
7.9%
1,114.7
7.9%
1,137.0
7.9%
% of revenue
205.8
2.1%
228.4
2.0%
262.8
2.1%
253.3
2.1%
257.8
2.2%
255.8
2.1%
261.0
2.1%
265.0
2.1%
269.2
2.1%
273.6
2.1%
278.3
2.1%
283.2
2.1%
288.3
2.1%
293.7
2.1%
299.4
2.1%
305.4
2.1%
% of revenue
(367.5)
(3.8%)
(230.2)
(2.0%)
(277.7)
(2.2%)
(270.2)
(2.2%)
(256.4)
(2.2%)
(265.8)
(2.2%)
(271.2)
(2.2%)
(275.3)
(2.2%)
(279.7)
(2.2%)
(284.3)
(2.2%)
(289.1)
(2.2%)
(294.2)
(2.2%)
(299.6)
(2.2%)
(305.2)
(2.2%)
(311.1)
(2.2%)
(317.3)
(2.2%)
(29.0)
(0.3%)
(165.8)
(1.5%)
(371.8)
(3.0%)
(124.8)
(1.0%)
68.2
0.6%
(138.4)
(1.1%)
(141.2)
(1.1%)
(143.4)
(1.1%)
(145.6)
(1.1%)
(148.0)
(1.1%)
(150.5)
(1.1%)
(153.2)
(1.1%)
(156.0)
(1.1%)
(158.9)
(1.1%)
(162.0)
(1.1%)
(165.2)
(1.1%)
Free Cash Flow to Firm (FCFF)
% of revenue
705.8
7.3%
738.7
6.5%
640.5
5.1%
697.1
5.8%
899.4
7.5%
804.0
6.7%
820.2
6.7%
832.7
6.7%
845.9
6.7%
859.8
6.7%
874.4
6.7%
889.8
6.7%
906.0
6.7%
923.1
6.7%
941.0
6.7%
959.8
6.7%
% of FCFF used in calculation
65.2%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.97
0.90
0.84
0.78
0.73
0.68
0.63
0.59
0.55
0.51
Discounted FCFF (DFCFF)
505.9
737.1
696.9
659.3
624.1
591.1
560.1
531.1
503.9
478.4

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HRL DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
5,888.0M
39.4%
Terminal Value (TV)
17.8B
Discounted TV
% share of EV
9,070.3M
60.6%
Total Debt
2,858.8M
Shares outstanding
535.1M
FX rate
1.0
18.4% overvalued

Equity Value Bridge

HRL DCF Financials

Revenue
$11.9B -> $14.1B 1.7% CAGR
Operating Income
$1,067.9M -> $1,434.4M 3.0% CAGR
FCFF
$899.4M -> $941.0M 0.5% CAGR

HRL DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
6.0%
$28.0
$31.0
$34.0
$35.0
$35.0
6.5%
$25.0
$27.0
$29.0
$32.0
$34.0
7.4%
$21.0
$23.0
$24.0
$26.0
$28.0
7.5%
$21.0
$22.0
$23.0
$25.0
$27.0
8.0%
$19.0
$20.0
$21.0
$22.0
$24.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
6.0%
(5.0%)
5.0%
15.0%
19.0%
19.0%
6.5%
(15.0%)
(8.0%)
(2.0%)
9.0%
15.0%
7.4%
(29.0%)
(22.0%)
(19.0%)
(12.0%)
(5.0%)
7.5%
(29.0%)
(25.0%)
(22.0%)
(15.0%)
(8.0%)
8.0%
(36.0%)
(32.0%)
(29.0%)
(25.0%)
(19.0%)

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FAQ

What is Hormel Foods Corporation DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Hormel Foods Corporation's Discounted Cash Flow (DCF) valuation estimates its share price at $24.0. This suggests it may be overvalued by (18.4%) compared to its current price of around $29.5, using a WACC of 7.4% and growth rates of 2.0%.

What is Hormel Foods Corporation WACC?

As of Mar 03, 2025, Hormel Foods Corporation's Weighted Average Cost of Capital (WACC) is approximately 7.4%.

What is Hormel Foods Corporation Enterprise Value?

As of Mar 03, 2025, Hormel Foods Corporation's Enterprise Value (EV) is approximately $15.0B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.