Using the industry peer median P/E multiple (trailing + forward), Hormel Foods Corporation (HRL) has a fair value of $13.61 based on 4 comparable companies in the Packaged Foods industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Hormel Foods CorporationHRL | 12,587 | 26.3x | 14.5x |
| The Clorox CompanyCLX | 12,547 | 15.8x | 17.4x |
| Brown-Forman CorporationBF-B | 12,158 | 14.1x | 14.8x |
| Conagra Brands, Inc.CAG | 7,288 | 6.3x | 8.8x |
| Campbell Soup CompanyCPB | 6,222 | 10.4x | 9.5x |
| Industry Median | 12.2x | 12.1x | |
| (*) Profit after tax | 478 | 871 | |
| Equity Value | 5,847 | 9,143 | |
| (/) Outstanding shares | 550 | 550 | |
| Fair Price | $11 | $17 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.