Darling Ingredients Valuation

Is DAR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DAR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DAR ($46.33) is trading below our estimate of fair value ($137.01)

Significantly Below Fair Value: DAR is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DAR?

Other financial metrics that can be useful for relative valuation.

DAR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA10.9x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does DAR's PE Ratio compare to its peers?

The above table shows the PE ratio for DAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17x
INGR Ingredion
12x0.2%US$7.7b
ADM Archer-Daniels-Midland
9.2x-10.4%US$32.1b
PPC Pilgrim's Pride
25.5x15.1%US$8.2b
POST Post Holdings
21.4x14.9%US$6.5b
DAR Darling Ingredients
11.4x5.3%US$7.4b

Price-To-Earnings vs Peers: DAR is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (17x).


Price to Earnings Ratio vs Industry

How does DAR's PE Ratio compare vs other companies in the US Food Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DAR is good value based on its Price-To-Earnings Ratio (11.4x) compared to the US Food industry average (15.5x).


Price to Earnings Ratio vs Fair Ratio

What is DAR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DAR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio19.1x

Price-To-Earnings vs Fair Ratio: DAR is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (19.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DAR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$46.33
US$64.35
+38.9%
20.6%US$95.00US$42.00n/a17
Mar ’25US$43.67
US$66.18
+51.5%
26.4%US$120.00US$42.00n/a17
Feb ’25US$43.52
US$68.06
+56.4%
25.3%US$120.00US$42.00n/a17
Jan ’25US$49.84
US$71.00
+42.5%
23.3%US$123.00US$50.00n/a16
Dec ’24US$45.27
US$71.00
+56.8%
23.3%US$123.00US$50.00n/a16
Nov ’24US$43.70
US$76.20
+74.4%
26.0%US$130.00US$50.00n/a15
Oct ’24US$52.20
US$90.53
+73.4%
14.4%US$118.00US$65.00n/a15
Sep ’24US$61.91
US$90.40
+46.0%
14.4%US$118.00US$65.00n/a15
Aug ’24US$68.69
US$90.33
+31.5%
14.9%US$120.00US$65.00n/a15
Jul ’24US$63.79
US$89.93
+41.0%
14.7%US$118.00US$65.00n/a15
Jun ’24US$63.19
US$90.07
+42.5%
15.1%US$121.00US$65.00n/a15
May ’24US$59.00
US$91.20
+54.6%
17.0%US$121.00US$65.00n/a15
Apr ’24US$58.40
US$92.36
+58.1%
16.6%US$117.00US$65.00n/a14
Mar ’24US$63.95
US$93.50
+46.2%
15.9%US$117.00US$65.00US$43.6714
Feb ’24US$67.46
US$95.71
+41.9%
14.5%US$118.00US$73.00US$43.5214
Jan ’24US$62.59
US$97.13
+55.2%
10.5%US$117.00US$79.00US$49.8415
Dec ’23US$64.60
US$98.43
+52.4%
11.1%US$117.00US$79.00US$45.2714
Nov ’23US$79.11
US$98.43
+24.4%
10.3%US$114.00US$79.00US$43.7014
Oct ’23US$66.15
US$97.69
+47.7%
10.6%US$116.00US$79.00US$52.2013
Sep ’23US$75.29
US$97.09
+29.0%
11.5%US$116.00US$79.00US$61.9111
Aug ’23US$70.33
US$94.83
+34.8%
12.0%US$115.00US$75.00US$68.6912
Jul ’23US$62.62
US$96.00
+53.3%
10.5%US$115.00US$82.00US$63.7913
Jun ’23US$80.99
US$96.00
+18.5%
10.5%US$115.00US$82.00US$63.1913
May ’23US$73.39
US$96.40
+31.4%
10.3%US$115.00US$80.00US$59.0015
Apr ’23US$83.20
US$96.79
+16.3%
10.2%US$115.00US$85.00US$58.4014
Mar ’23US$76.98
US$93.50
+21.5%
10.7%US$109.00US$75.00US$63.9512

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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