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Hormel Foods Corp  (NYSE:HRL) Enterprise Value: $17,948 Mil (As of Today)

Think of enterprise value as the theoretical takeover price. It is more comprehensive than market capitalization (market cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.

EV-to-EBIT is calculated as enterprise value divided by its EBIT. As of today, Hormel Foods Corp's enterprise value is $17,948 Mil. Hormel Foods Corp's EBIT for the trailing twelve months (TTM) ended in Oct. 2017 was $1,291 Mil. Therefore, Hormel Foods Corp's EV/EBIT ratio for today is 13.90.

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Hormel Foods Corp's enterprise value is $17,948 Mil. Hormel Foods Corp's EBITDA for the trailing twelve months (TTM) ended in Oct. 2017 was $1,422 Mil. Therefore, Hormel Foods Corp's EV/EBITDA ratio for today is 12.62.

EV-to-Revenue is calculated as enterprise value divided by its Revenue. As of today, Hormel Foods Corp's enterprise value is $17,948 Mil. Hormel Foods Corp's Revenue for the trailing twelve months (TTM) ended in Oct. 2017 was $9,168 Mil. Therefore, Hormel Foods Corp's EV/Revenue ratio for today is 1.96.


Historical Data

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

* Premium members only.

Hormel Foods Corp Annual Data

Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17
Enterprise Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11,280.19 14,136.32 17,940.65 20,184.74 16,256.85

Hormel Foods Corp Quarterly Data

Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17
Enterprise Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20,184.74 18,838.94 18,245.61 17,653.00 16,256.85

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Calculation

Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.

Hormel Foods Corp's Enterprise Value for the fiscal year that ended in Oct. 2017 is calculated as

Enterprise Value (A: Oct. 2017 )
=Market Cap (M)+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=16447.1828+0+250
+Current Portion of Long-Term Debt+Minority Interest-Cash, Cash Equivalents, Marketable Securities
+0+3.79-444.122
=16,257

Hormel Foods Corp's Enterprise Value for the quarter that ended in Oct. 2017 is calculated as

Enterprise Value (Q: Oct. 2017 )
=Market Cap (M)+Preferred Stock+Long-Term Debt & Capital Lease Obligation
=16447.1828+0+250
+Current Portion of Long-Term Debt+Minority Interest-Cash, Cash Equivalents, Marketable Securities
+0+3.79-444.122
=16,257

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


Explanation

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap (M) because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of enterprise value.

For the companies with the same Market Cap (M), the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap (M). In this case the investor is basically getting the company for free and get paid for that.

1. EV-to-EBIT is calculated as enterprise value divided by its EBIT.

Hormel Foods Corp's EV/EBIT for today is

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=17947.954/1291.328
=13.90

Hormel Foods Corp's current Enterprise Value is $17,948 Mil.
Hormel Foods Corp's EBIT for the trailing twelve months (TTM) ended in Oct. 2017 was 357.811 (Jan. 2017 ) + 318.85 (Apr. 2017 ) + 281.081 (Jul. 2017 ) + 333.586 (Oct. 2017 ) = $1,291 Mil.

2. EV-to-EBITDA is calculated as enterprise value divided by its EBITDA.

Hormel Foods Corp's EV/EBITDA for today is:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA(TTM)
=17947.954/1422.305
=12.62

Hormel Foods Corp's current Enterprise Value is $17,948 Mil.
Hormel Foods Corp's EBITDA for the trailing twelve months (TTM) ended in Oct. 2017 was 389.13 (Jan. 2017 ) + 350.859 (Apr. 2017 ) + 313.874 (Jul. 2017 ) + 368.442 (Oct. 2017 ) = $1,422 Mil.

3. EV-to-Revenue is calculated as enterprise value divided by its Revenue.

Hormel Foods Corp's EV/Revenue for today is:

EV-to-Revenue=Enterprise Value (Today)/Revenue (TTM)
=17947.954/9167.519
=1.96

Hormel Foods Corp's current Enterprise Value is $17,948 Mil.
Hormel Foods Corp's EBITDA for the trailing twelve months (TTM) ended in Oct. 2017 was 2280.227 (Jan. 2017 ) + 2187.309 (Apr. 2017 ) + 2207.375 (Jul. 2017 ) + 2492.608 (Oct. 2017 ) = $9,168 Mil.

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


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