Darling Ingredients Inc (DAR) is overvalued and Kraft Heinz Co (KHC) is overvalued.
Both trade above our estimate of their intrinsic value. DAR is the closer of the two: -40%, against -67% for KHC.
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
Its through-the-cycle earnings (12.8% median margin), capitalised at 6.9% with no growth, values the shares at $14.36; the price of $24.00 is 67% above that value.
Leak Score 23/100 on 8 of 12 signals
| Metric | DAR | KHC |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $61.63 | $24.00 |
| Intrinsic value | $43.98 | $14.36 |
| Margin of safety | -40% | -67% |
| Leak Score | 14/100 (3/12) | 23/100 (8/12) |
| Market cap | $9.7B | $28.5B |
| Revenue growth, 5 years | 11.4% | -1.0% |
| Operating margin | 8.9% | 17.1% |
| Net margin | 9.1% | -13.6% |
| Return on equity | 12.1% | -8.8% |
| Debt to equity | 0.80 | 0.53 |
| P/E | 16.6x | — |
| Forward P/E | 10.1x | 11.6x |
| P/B | 1.9x | 0.8x |
| Dividend yield | — | 6.7% |