Discounted Cash Flow (DCF) Analysis Levered

Hormel Foods Corporation (HRL)

$45.6301

+0.39 (+0.86%)
All numbers are in Millions, Currency in USD
Stock DCF: 97.86 | 45.6301 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 9,545.709,497.329,608.4611,386.1912,458.8113,349.1614,303.1415,325.2916,420.4917,593.96
Revenue (%)
Operating Cash Flow 1,241.739231,128.021,001.931,134.981,398.351,498.281,605.361,720.081,843
Operating Cash Flow (%)
Capital Expenditure -389.61-293.84-367.50-232.42-278.92-407.95-437.11-468.34-501.81-537.67
Capital Expenditure (%)
Free Cash Flow 852.12629.16760.52769.52856.06990.401,061.181,137.011,218.271,305.33

Weighted Average Cost Of Capital

Share price $ 45.6,301
Beta 0.183
Diluted Shares Outstanding 549.57
Cost of Debt
Tax Rate 21.76
After-tax Cost of Debt 1.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.478
Total Debt 3,299.34
Total Equity 25,076.75
Total Capital 28,376.10
Debt Weighting 11.63
Equity Weighting 88.37
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 9,545.709,497.329,608.4611,386.1912,458.8113,349.1614,303.1415,325.2916,420.4917,593.96
Operating Cash Flow 1,241.739231,128.021,001.931,134.981,398.351,498.281,605.361,720.081,843
Capital Expenditure -389.61-293.84-367.50-232.42-278.92-407.95-437.11-468.34-501.81-537.67
Free Cash Flow 852.12629.16760.52769.52856.06990.401,061.181,137.011,218.271,305.33
WACC
PV LFCF 776.88799.39822.54846.37870.89
SUM PV LFCF 5,039.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.13
Free cash flow (t + 1) 1,331.44
Terminal Value 62,508.71
Present Value of Terminal Value 51,057.69

Intrinsic Value

Enterprise Value 56,096.89
Net Debt 2,317.24
Equity Value 53,779.65
Shares Outstanding 549.57
Equity Value Per Share 97.86