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

As of today, Hormel Foods Corp's share price is $50.32. Hormel Foods Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Apr. 2014 was $1.92. Hence, Hormel Foods Corp's Price-to-Free-Cash-Flow Ratio for today is 26.40.

HRL' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 10.49   Max: 274.9
Current: 26.4

10.49
274.9

During the past 13 years, Hormel Foods Corp's highest Price-to-Free-Cash-Flow Ratio was 274.90. The lowest was 10.49. And the median was 20.89.

HRL's Price-to-Free-Cash-Flow ratiois ranked higher than
72% of the 1586 Companies
in the Global Packaged Foods industry.

( Industry Median: 44.26 vs. HRL: 26.40 )

Hormel Foods Corp's Free Cash Flow per Share for the three months ended in Apr. 2014 was $-0.29. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Apr. 2014 was $1.92.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Hormel Foods Corp was 17.10% 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 3.20% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 10.90% per year.

During the past 13 years, Hormel Foods Corp's highest 3-Year average Free Cash Flow per Share Growth Rate was 155.90% per year. The lowest was -39.40% per year. And the median was 8.75% per year.


Definition

Hormel Foods Corp'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)
=50.32/1.92
=26.21

Hormel Foods Corp's Share Price of today is $50.32.
Hormel Foods Corp's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Apr. 2014 was 0.55 (Jul. 2013 ) + 0.63 (Oct. 2013 ) + 1.03 (Jan. 2014 ) + -0.29 (Apr. 2014 ) = $1.92.

* 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 Corp Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
pfcf 18.4913.7126.9523.6926.1710.8515.8320.3220.6522.17

Hormel Foods Corp Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
pfcf 21.3225.7223.6520.6524.3725.1620.5622.1717.8224.84
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