Hormel Foods Corporation (HRL) Stock Valuation — PE Analysis
Packaged Foods · NYSE
Current Price
$24.75
PE Ratio (TTM)
29.2x
Intrinsic Value
$21.91
-12.9% margin of safety
COMPETITIVE MOAT
↑Brand Loyalty and Recognition
Hormel's established brands like Spam and Jennie-O have cultivated strong consumer loyalty. This deep-rooted recognition creates a barrier to entry for new competitors in the packaged foods market.
↑Scale and Distribution Network
The company's extensive manufacturing and distribution capabilities allow for efficient product delivery across diverse markets. This scale provides cost advantages and market penetration that smaller rivals struggle to match.
↑Product Innovation and Diversification
Hormel consistently introduces new products and expands into various food categories. This adaptability helps them capture evolving consumer preferences and reduces reliance on any single product line.
INVESTMENT RISKS
↓Commodity Price Volatility
Fluctuations in the cost of raw materials like pork and poultry can significantly impact Hormel's profit margins. Managing these input costs is a constant challenge.
↓Changing Consumer Preferences
Shifts towards healthier eating or plant-based diets could negatively affect demand for some of Hormel's traditional products. Adapting to these trends requires ongoing investment and strategic adjustments.
↓Intense Competition
The packaged foods industry is highly competitive, with numerous established players and private label brands vying for shelf space and consumer attention. This pressure can limit pricing power.
Base case
HRL base case PE valuation
A base case PE valuation for HRL estimates a fair value of about $21.91 per share, against a current price of $24.75. The model assumes 3.7% annual earnings growth, a 29x target PE multiple, and a 10% discount rate.
Intrinsic Value
$21.91
Margin of safety
-12.9%
Expected annual return
-2.4%
Base case assumptions: 3.7% annual earnings growth, 29x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the HRL PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Hormel Foods Corporation respond.
Open PE Calculator for HRLCompany Overview
Hormel Foods Corporation is a prominent global food company that specializes in the creation, preparation, and supply of a diverse array of meat, nut, and other culinary items. Its extensive clientele spans retail outlets, institutional food providers (foodservice), specialty delis, and various commercial enterprises across the United States and internationally. The company's operations are strategically structured into four main divisions: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, and International & Other. Hormel's product portfolio is broad, encompassing numerous perishable goods such as fresh meats, frozen food selections, convenient refrigerated meal options, a variety of sausages, hams, guacamole, and bacon. Additionally, it offers a wide range of non-perishable items, including canned luncheon meats, various nut butters, snack nuts, chili, microwave-ready meals, hashes, stews, tortillas, salsas, and tortilla chips. Beyond these offerings, Hormel Foods is also actively involved in the processing, promotion, and distribution of both branded and unbranded products derived from pork, beef, poultry, and turkey. The company further supplies nutritional food items and supplements, dessert and beverage mixes, and industrial-grade gelatin. Its extensive product line is marketed under numerous widely recognized brand names, including SKIPPY, SPAM, Hormel, Natural Choice, Applegate, Justin's, Jennie-O, Café H, Herdez, Black Label, Sadler's, Columbus, Gatherings, Wholly, Planters, NUT-rition, Planters Cheez Balls, and Corn Nuts. These products reach consumers through a multi-channel distribution network, utilizing internal sales teams, independent brokers, and various distributors. Founded in 1891 as Geo. A. Hormel & Company, the organization was officially rebranded as Hormel Foods Corporation in January 1995. Its corporate headquarters are located in Austin, Minnesota.
Financial Metrics — HRL PE Stock Valuation Data
PE Ratio (TTM)
29.2x
PEG Ratio
n/m
Earnings Yield
3.43%
ROE (TTM)
5.9%
Revenue/Share (TTM)
$22.19
Dividend Yield
4.71%
Debt/Equity
0.36x
Frequently Asked Questions
What is the PE ratio of HRL?
The trailing twelve-month PE ratio of HRL reflects how much investors pay per dollar of Hormel Foods Corporation's earnings. This metric is most useful when compared to Packaged Foods peers and the company's own historical range.
Is HRL overvalued based on PE ratio?
HRL's PE of 29.2x combined with a PEG ratio of -0.78 provides a growth-adjusted perspective. HRL has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Packaged Foods, a DCF analysis may be more appropriate.
How do I value HRL stock using PE ratio?
To value Hormel Foods Corporation using PE: (1) Compare the current PE (29.2x) against the Packaged Foods median to assess relative pricing, (2) check the PEG ratio (-0.78) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of HRL?
HRL's PEG ratio is -0.78, calculated by dividing the PE ratio (29.2x) by the expected earnings growth rate. Because HRL has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for HRL stock valuation?
PE ratio gives a quick relative read — how HRL is priced versus Packaged Foods peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See HRL DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Defensive valuationsP/E and DCF value HRL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.