Hormel Foods Corp (HRL) is overvalued and McCormick & Co Inc (MKC) is slightly undervalued.
Against our estimates of intrinsic value, MKC trades at the wider discount: a margin of safety of +19%, 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 7.7% (average of 3 methods) values the shares at $60.69; the price of $49.42 is 19% below that value, and 80% of that value comes from beyond year five.
Leak Score 81/100 on 3 of 12 signals
| Metric | HRL | MKC |
|---|---|---|
| Verdict | Overvalued | Slightly undervalued |
| Price | $20.33 | $49.42 |
| Intrinsic value | $16.02 | $60.69 |
| Margin of safety | -27% | +19% |
| Leak Score | 0/100 (2/12) | 81/100 (3/12) |
| Market cap | $11.2B | $13.3B |
| Revenue growth, 5 years | 4.7% | 4.1% |
| Operating margin | 7.4% | 16.7% |
| Net margin | 2.8% | 21.9% |
| Return on equity | 4.3% | 25.7% |
| Debt to equity | 0.36 | 0.71 |
| P/E | 32.7x | 8.2x |
| Forward P/E | 12.9x | 15.0x |
| P/B | 1.4x | 1.9x |
| Dividend yield | 5.8% | 3.9% |