Darling Ingredients Inc (DAR) is overvalued and Hormel Foods Corp (HRL) is overvalued.
Both trade above our estimate of their intrinsic value. HRL is the closer of the two: -27%, against -40% for DAR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.7% (average of 3 methods) values the shares at $43.98; the price of $61.63 is 40% above that value, and 77% of that value comes from beyond year five.
Leak Score 14/100 on 3 of 12 signals
Discounting its cash flows at 7.0% (average of 3 methods) values the shares at $16.02; the price of $20.33 is 27% above that value, and 83% of that value comes from beyond year five.
Leak Score 0/100 on 2 of 12 signals
| Metric | DAR | HRL |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $61.63 | $20.33 |
| Intrinsic value | $43.98 | $16.02 |
| Margin of safety | -40% | -27% |
| Leak Score | 14/100 (3/12) | 0/100 (2/12) |
| Market cap | $9.7B | $11.2B |
| Revenue growth, 5 years | 11.4% | 4.7% |
| Operating margin | 8.9% | 7.4% |
| Net margin | 9.1% | 2.8% |
| Return on equity | 12.1% | 4.3% |
| Debt to equity | 0.80 | 0.36 |
| P/E | 16.6x | 32.7x |
| Forward P/E | 10.1x | 12.9x |
| P/B | 1.9x | 1.4x |
| Dividend yield | — | 5.8% |