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Hormel Foods Corporation (NYSE:HRL)
Price-to-Free-Cash-Flow Ratio
18.40 (As of Today)

As of today, Hormel Foods Corporation's share price is $47.78. Hormel Foods Corporation's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jan. 2014 was $2.55. Hence, Hormel Foods Corporation's Price-to-Free-Cash-Flow Ratio for today is 18.40.

HRL' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 10.31   Max: 33.72
Current: 18.4

10.31
33.72

During the past 13 years, Hormel Foods Corporation's highest Price-to-Free-Cash-Flow Ratio was 33.72. The lowest was 10.31. And the median was 19.54.

HRL's Price-to-Free-Cash-Flow ratiois ranked higher than
63% of the 824 Companies
in the Global Packaged Foods industry.

( Industry Median: 19.20 vs. HRL: 18.40 )

Hormel Foods Corporation's Free Cash Flow per Share for the three months ended in Jan. 2014 was $1.03. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jan. 2014 was $2.55.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Hormel Foods Corporation was 79.60% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 10.50% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 2.80% per year.

During the past 13 years, Hormel Foods Corporation's highest 3-Year average Free Cash Flow per Share Growth Rate was 55.00% per year. The lowest was -7.90% per year. And the median was 15.00% per year.


Definition

Hormel Foods Corporation's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=47.78/2.55
=18.74

Hormel Foods Corporation's Share Price of today is $47.78.
Hormel Foods Corporation's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jan. 2014 was 0.34 (Apr. 2013 ) + 0.55 (Jul. 2013 ) + 0.63 (Oct. 2013 ) + 1.03 (Jan. 2014 ) = $2.55.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Hormel Foods Corporation Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
pfcf 20.9813.7126.9524.3226.1710.6615.8320.3220.6522.17

Hormel Foods Corporation Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
pfcf 20.3221.3225.7223.6520.6524.3725.1620.5622.1717.82
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