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GuruFocus has detected 1 Warning Sign with Hormel Foods Corp $HRL.
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Hormel Foods Corp (NYSE:HRL)
PEG Ratio
PE(NRI) Ratio / EBITDA 5-Y Growth
1.95 (As of Today)

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The growth rate we use is the 5-year average EBITDA growth rate. As of today, Hormel Foods Corp's P/E (NRI) Ratio is 21.50. Hormel Foods Corp's 5-year average EBITDA growth rate is 11.00%. Therefore, Hormel Foods Corp's PEG for today is 1.95.

HRL' s PEG Ratio Range Over the Past 10 Years
Min: 1.34   Max: 3.9
Current: 1.91

1.34
3.9

During the past 13 years, Hormel Foods Corp's highest PEG was 3.90. The lowest was 1.34. And the median was 2.16.

HRL's PEG Ratio is ranked higher than
54% of the 526 Companies
in the Global Packaged Foods industry.

( Industry Median: 2.19 vs. HRL: 1.91 )

Peter Lynch thinks a company with a P/E (NRI) ratio equal to its growth rate is fairly valued.


Definition

PEG is defined as the P/E (NRI) Ratio divided by the growth ratio. The ratio we use is the 5-year average EBITDA growth rate.

Hormel Foods Corp's PEG for today is calculated as

PEG=P/E (NRI) Ratio/EBITDA Growth Rate (5-year average)
=21.5/11.00
=1.95

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG. PEG is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Related Terms

P/E (NRI) Ratio, Peter Lynch Fair Value


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Hormel Foods Corp Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
peg 1.601.432.372.231.821.682.373.173.301.99

Hormel Foods Corp Quarterly Data

Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17
peg 3.172.982.863.033.303.392.792.281.991.75
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