Discounted Cash Flow (DCF) Analysis Levered

Hormel Foods Corporation (HRL)

$46.87

-0.18 (-0.38%)
All numbers are in Millions, Currency in USD
Stock DCF: 100.84 | 46.87 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 9,167.529,545.709,497.329,608.4611,386.1912,049.1612,750.7313,493.1514,278.8015,110.20
Revenue (%)
Operating Cash Flow 1,010.201,241.739231,128.021,001.931,308.191,384.361,464.971,550.261,640.53
Operating Cash Flow (%)
Capital Expenditure -221.29-389.61-293.84-367.50-232.42-372.44-394.13-417.08-441.36-467.06
Capital Expenditure (%)
Free Cash Flow 788.91852.12629.16760.52769.52935.75990.231,047.891,108.901,173.47

Weighted Average Cost Of Capital

Share price $ 46.87
Beta 0.111
Diluted Shares Outstanding 547.58
Cost of Debt
Tax Rate 19.30
After-tax Cost of Debt 1.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.221
Total Debt 3,323.90
Total Equity 25,665.07
Total Capital 28,988.98
Debt Weighting 11.47
Equity Weighting 88.53
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 9,167.529,545.709,497.329,608.4611,386.1912,049.1612,750.7313,493.1514,278.8015,110.20
Operating Cash Flow 1,010.201,241.739231,128.021,001.931,308.191,384.361,464.971,550.261,640.53
Capital Expenditure -221.29-389.61-293.84-367.50-232.42-372.44-394.13-417.08-441.36-467.06
Free Cash Flow 788.91852.12629.16760.52769.52935.75990.231,047.891,108.901,173.47
WACC
PV LFCF 900.97917.99935.34953.01971.02
SUM PV LFCF 4,678.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.86
Free cash flow (t + 1) 1,196.94
Terminal Value 64,351.46
Present Value of Terminal Value 53,249.66

Intrinsic Value

Enterprise Value 57,928
Net Debt 2,710.37
Equity Value 55,217.62
Shares Outstanding 547.58
Equity Value Per Share 100.84