Hormel Foods Corporation develops, processes, and distributes various meat, nuts, and other food products to foodservice, convenience store, and commercial customers in the United States and internationally. It operates through three segments: Retail, Foodservice, and International segments.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (10 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $16.36 Implied EV: $8.68B |
What growth rate is the market pricing in at $24?
The market implies +11.9% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +12.1%, reflecting heavy growth investment.
Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.
"Market is pricing this stock without strong emotion in either direction"
Price appears to exceed estimated intrinsic value — limited margin of safety at current levels
