Hormel Foods Corp (HRL) is overvalued and JBS NV (JBS) is undervalued.
Against our estimates of intrinsic value, JBS trades at the wider discount: a margin of safety of +44%, against -27% for HRL.
Values as of the 22 Sept 2026 close.
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
Discounting its cash flows at 6.0% (average of 3 methods) values the shares at $21.43; the price of $11.90 is 44% below that value, and 87% of that value comes from beyond year five.
Leak Score 54/100 on 3 of 12 signals
| Metric | HRL | JBS |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $20.33 | $11.90 |
| Intrinsic value | $16.02 | $21.43 |
| Margin of safety | -27% | +44% |
| Leak Score | 0/100 (2/12) | 54/100 (3/12) |
| Market cap | $11.2B | $12.7B |
| Revenue growth, 5 years | 4.7% | 10.4% |
| Operating margin | 7.4% | 3.5% |
| Net margin | 2.8% | 1.2% |
| Return on equity | 4.3% | 13.4% |
| Debt to equity | 0.36 | 2.97 |
| P/E | 32.7x | 11.1x |
| Forward P/E | 12.9x | 8.7x |
| P/B | 1.4x | 1.4x |
| Dividend yield | 5.8% | 8.6% |