Darling Ingredients Inc.

NYSE:DAR Stock Report

Market Cap: US$6.8b

Darling Ingredients Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ($42.49) is trading below our estimate of fair value ($162.1)

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?

Key metric: As DAR is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for DAR. This is calculated by dividing DAR's market cap by their current earnings.
What is DAR's PE Ratio?
PE Ratio25.8x
EarningsUS$261.49m
Market CapUS$6.85b

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 Average35x
INGR Ingredion
13.2x0.5%US$9.2b
BG Bunge Global
11.1x17.2%US$12.7b
ADM Archer-Daniels-Midland
9.7x-4.0%US$25.5b
FDP Fresh Del Monte Produce
106x71.9%US$1.6b
DAR Darling Ingredients
25.8x29.9%US$6.8b

Price-To-Earnings vs Peers: DAR is good value based on its Price-To-Earnings Ratio (25.8x) compared to the peer average (35x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GCEH Global Clean Energy Holdings
2.1xn/aUS$45.02m
SEED Origin Agritech
1.8xn/aUS$14.54m
FAMI Farmmi
1.8xn/aUS$2.81m
IDBH.F Industrias Bachoco. de
0.0002xn/aUS$59.94k
DAR 25.8xIndustry Avg. 19.2xNo. of Companies8PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DAR is expensive based on its Price-To-Earnings Ratio (25.8x) compared to the US Food industry average (18.9x).

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 Ratio25.8x
Fair PE Ratio32.3x

Price-To-Earnings vs Fair Ratio: DAR is good value based on its Price-To-Earnings Ratio (25.8x) compared to the estimated Fair Price-To-Earnings Ratio (32.3x).

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$42.49
US$51.70
+21.7%
17.4%US$65.00US$40.00n/a13
Nov ’25US$39.40
US$51.93
+31.8%
17.9%US$66.00US$40.00n/a13
Oct ’25US$36.61
US$54.37
+48.5%
18.5%US$70.00US$41.11n/a14
Sep ’25US$41.73
US$55.54
+33.1%
17.2%US$70.00US$42.00n/a13
Aug ’25US$38.93
US$56.00
+43.8%
18.1%US$72.00US$42.00n/a13
Jul ’25US$35.94
US$57.62
+60.3%
16.9%US$73.00US$42.00n/a13
Jun ’25US$40.40
US$57.73
+42.9%
15.5%US$73.00US$42.00n/a15
May ’25US$41.98
US$61.35
+46.1%
19.6%US$90.00US$42.00n/a17
Apr ’25US$45.40
US$64.35
+41.7%
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$50.00US$39.4015
Oct ’24US$52.20
US$90.53
+73.4%
14.4%US$118.00US$65.00US$36.6115
Sep ’24US$61.91
US$90.40
+46.0%
14.4%US$118.00US$65.00US$41.7315
Aug ’24US$68.69
US$90.33
+31.5%
14.9%US$120.00US$65.00US$38.9315
Jul ’24US$63.79
US$89.93
+41.0%
14.7%US$118.00US$65.00US$35.9415
Jun ’24US$63.19
US$90.07
+42.5%
15.1%US$121.00US$65.00US$40.4015
May ’24US$59.00
US$91.20
+54.6%
17.0%US$121.00US$65.00US$41.9815
Apr ’24US$58.40
US$92.36
+58.1%
16.6%US$117.00US$65.00US$45.4014
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

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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