Hormel Foods Corp

HRL: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$49.00	Gsvmbq	Pgpjngjh

Hormel: Recent Headwinds Shouldn’t Threaten Dividend Aristocrat Status, but Shares Fairly Valued

Kristoffer Inton

Jun 6, 2023

We are raising our fair value estimate for Hormel Foods to $38 from $37.50, which implies a 21 times 2023 EPS multiple and an enterprise value to 2023 adjusted EBITDA of 15 times. The increase comes from a slightly more optimistic long-term outlook, with 2027 adjusted EBITDA of nearly $2.3 billion now 7% higher than our prior forecast, as we now expect a quicker recovery from recent headwinds at both the top line and margin.

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