Discounted Cash Flow (DCF) Analysis Levered

Hormel Foods Corporation (HRL)

$29.525

+0.09 (+0.29%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.90 | 29.525 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 9,497.329,608.4611,386.1912,458.8112,110.0112,906.0213,754.3614,658.4615,621.9816,648.84
Revenue (%)
Operating Cash Flow 9231,128.021,001.931,134.981,047.851,239.511,320.981,407.811,500.351,598.97
Operating Cash Flow (%)
Capital Expenditure -256.44-367.50-230.20-277.69-270.21-335.73-357.80-381.32-406.38-433.10
Capital Expenditure (%)
Free Cash Flow 666.56760.52771.73857.28777.64903.78963.181,026.491,093.971,165.88

Weighted Average Cost Of Capital

Share price $ 29.525
Beta 0.231
Diluted Shares Outstanding 548.98
Cost of Debt
Tax Rate 21.70
After-tax Cost of Debt 3.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.378
Total Debt 3,309.25
Total Equity 16,208.69
Total Capital 19,517.94
Debt Weighting 16.95
Equity Weighting 83.05
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 9,497.329,608.4611,386.1912,458.8112,110.0112,906.0213,754.3614,658.4615,621.9816,648.84
Operating Cash Flow 9231,128.021,001.931,134.981,047.851,239.511,320.981,407.811,500.351,598.97
Capital Expenditure -256.44-367.50-230.20-277.69-270.21-335.73-357.80-381.32-406.38-433.10
Free Cash Flow 666.56760.52771.73857.28777.64903.78963.181,026.491,093.971,165.88
WACC
PV LFCF 860.41872.97885.71898.64911.76
SUM PV LFCF 4,429.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.04
Free cash flow (t + 1) 1,177.53
Terminal Value 29,146.89
Present Value of Terminal Value 22,793.90

Intrinsic Value

Enterprise Value 27,223.39
Net Debt 2,572.72
Equity Value 24,650.68
Shares Outstanding 548.98
Equity Value Per Share 44.90