Is Hormel Foods Corporation (HRL) Undervalued?
Based on the current stock price of $24.26 and a P/E ratio of 27.89,Hormel Foods Corporation has a PEG ratio of 4.05.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 4.05, HRL appears to be potentially overvalued relative to its growth rate of 6.89%.
Based on a PEG ratio of 2.38 (adjusted for dividends).
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How we analyzed HRL
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 27.89and dividing it by the annual growth rate of 6.89%.
PEG = 27.89 (P/E) ÷ 6.89 (Growth) = 4.05
Frequently Asked Questions about HRL
What is the current PEG Ratio for Hormel Foods Corporation (HRL)?+
The current PEG Ratio for Hormel Foods Corporation is 4.05. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is HRL stock undervalued right now?+
Based on the PEG ratio of 4.05, Hormel Foods Corporation appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for HRL?+
The PEGY ratio for Hormel Foods Corporation is 2.38. This metric accounts for dividend yield (4.82%), providing a more complete valuation picture.