What Is HRL Fair Value?
Hormel Foods (HRL) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Hormel Foods (HRL) has a composite fair value estimate of $31.40 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $19.81, suggesting the stock is undervalued by 58.5%.
Data as of October 14, 2026 (today)
Composite Fair Value
Undervalued3 of 4 models$31.40
vs. current price of $19.81(+58.5%)
How Is HRL Fair Value Calculated?
Four independent models estimate what HRL is worth. Each uses different inputs and assumptions. The composite blends them by weight.
HRL Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
41% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$42.57
+114.9%Undervalued
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
HRL Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$21.81
+10.1%Fair Value
Inputs used
PEG (Price/Earnings to Growth)
29% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$14.84
-25.1%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $19.81 is 114.9% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $664.7M | $629.2M |
| Year 2 | $710.9M | $637.0M |
| Year 3 | $760.4M | $644.9M |
| Year 4 | $813.2M | $652.8M |
| Year 5 | $869.7M | $660.9M |
| Year 6 | $930.2M | $669.0M |
| Year 7 | $994.8M | $677.3M |
| Year 8 | $1.06B | $685.7M |
| Year 9 | $1.14B | $694.1M |
| Year 10 | $1.22B | $702.7M |
| Terminal Value | $39.66B | $22.90B |
What Are HRL's Key Financial Metrics?
Earnings & Growth
Current Price
$19.81
EPS (TTM)
$0.62
Forward P/E
12.6
Profit Margin
2.8%
Cash & Balance Sheet
Free Cash Flow
621.6M
EBITDA
1.3B
Book Value
$14.25
Total Debt
2.9B
What Do Analysts Say About HRL?
Low
$23.00
Average
$25.31
High
$29.00
Upside
+27.8%
HRL Fair Value FAQ
What is the fair value of HRL?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), HRL's estimated fair value is $31.40. The stock is currently trading at $19.81, which makes it undervalued by our analysis.
How is HRL's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is HRL overvalued or undervalued?
Based on our analysis, HRL is undervalued. The current price of $19.81 is 58.5% below our estimated fair value of $31.40.
What do Wall Street analysts say about HRL?
8 analysts cover Hormel Foods with a consensus rating of "Hold." The average price target is $25.31, ranging from $23.00 to $29.00. This implies 27.8% upside from the current price.