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.

Discounted Cash Flow
Simply Wall St
US$158.73
Fair Value
76.4% undervalued intrinsic discount
14
Number of Analysts

Below Fair Value: DAR ($37.46) is trading below our estimate of fair value ($158.73)

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 Ratio22.8x
EarningsUS$261.49m
Market CapUS$5.83b

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 Average32.9x
INGR Ingredion
13x1.1%US$9.0b
BG Bunge Global
9.2x15.9%US$10.8b
FDP Fresh Del Monte Produce
95.5x71.9%US$1.5b
ADM Archer-Daniels-Midland
13.6x6.5%US$24.7b
DAR Darling Ingredients
22.8x36.2%US$5.8b

Price-To-Earnings vs Peers: DAR is good value based on its Price-To-Earnings Ratio (22.8x) compared to the peer average (32.9x).


Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GCEH Global Clean Energy Holdings
0.4xn/aUS$52.69m
SEED Origin Agritech
1.7xn/aUS$13.91m
IDBH.F Industrias Bachoco. de
0.02xn/aUS$9.65m
OGAA Organic Agricultural
1.6xn/aUS$46.36k
No more companies available in this PE range
DAR 22.8xIndustry Avg. 20.3xNo. of Companies7PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: DAR is expensive based on its Price-To-Earnings Ratio (22.8x) compared to the US Food industry average (20.5x).


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 Ratio22.8x
Fair PE Ratio35.4x

Price-To-Earnings vs Fair Ratio: DAR is good value based on its Price-To-Earnings Ratio (22.8x) compared to the estimated Fair Price-To-Earnings Ratio (35.4x).


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$37.46
US$51.97
+38.7%
15.3%US$65.00US$40.00n/a14
Jan ’26US$33.69
US$51.50
+52.9%
16.1%US$65.00US$40.00n/a13
Dec ’25US$40.53
US$51.70
+27.6%
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$42.00US$37.4617
Jan ’25US$49.84
US$71.00
+42.5%
23.3%US$123.00US$50.00US$33.6916
Dec ’24US$45.27
US$71.00
+56.8%
23.3%US$123.00US$50.00US$40.5316
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
Analyst Price Target
Consensus Narrative from 14 Analysts
US$51.97
Fair Value
27.9% undervalued intrinsic discount
14
Number of Analysts

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.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/31 23:50
End of Day Share Price 2025/01/31 00:00
Earnings2024/09/28
Annual Earnings2023/12/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Darling Ingredients Inc. is covered by 32 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jinming LiuArdour Capital Investments, LLC
Daniel MannesAvondale Partners
Benjamin KalloBaird