Hormel Fair Value
HR
The fair market value of HRL stock is 36.68 USD. Relative to the market price of 30.1634 USD Hormel is undervalued by 21.5%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Hormel Valuation
Current HRL share ticker price is 30.1634 USD.
The fair value level of 36.68 USD can be considered as an effective entry point for long-term investors to start investing in HRL stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 22% lower its fair value
Current price is 5% lower its minimum value
Current price is 39% lower its maximum value
Market price:
HRL stock is greatly undervalued
It means the current price may concern as a Low Risk Entry Point
Hormel Foods Corp Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
29.32
2
Median P/E over 5 years
25.71
3
Minimum P/E over 5 years
22.31
4
Earning per share (last 12 months)
1.43 USD
Maximum value
1
x
4
=
41.83 USD
Fair value
2
x
4
=
36.68 USD
Minimum value
3
x
4
=
31.82 USD
Hormel Foods Corp price metrics
-7.33
Annual return (geometric mean)
24.23
Risk (standard deviation) of returns
β
0.23
Beta (volatility compared to market)