Although the S&P 500 closed slightly lower Thursday, the index is still near its all time high as investors continue to enjoy an 8-year bull market.

However, many equity analysts remain cautious as stocks appear to be trading at inflated multiples. Goldman Sachs even went on record saying that they believe the U.S. bull market is in its last few innings.

However, there's little upside in being too defensive in this bull market. So we used finbox.io’s dividend discount models to see if there are any Dividend Aristocrats that still appear to be fundamentally undervalued.

2 Dividend Aristocrats Trading at a Discount

As quick reminder, a dividend discount model estimates the value of a company's stock price based on the theory that its true value is equal to the sum of the present value all of its future dividend payments to shareholders.

After applying this technique to the 52 Dividend Aristocrats, there were two companies that stood out: Hormel Foods Corp (NYSE:HRL) and AbbVie Inc (NYSE:ABBV).

AbbVie has distributed a significant amount of its earnings in the form of dividends (~60 percent) since the company spun off from Abbott Laboratories (NYSE:ABT) in 2013. The company appears to be trading at a 10 percent discount to fair value when applying similar assumptions in the 5-year dividend discount model as shown below.

It’s worth noting that dividend discount models are known to provide conservative estimates of fair value as some cash leakage not taken into account. However, as economist John Maynard Keynes once noted:

-- "It is better to be roughly right than precisely wrong." --

Hence, the conservative nature of the model should help investors get comfortable with the upside potential for each company. These two Dividend Aristocrats could prove to produce outsized total returns in a bull market as well as a safe haven in a down market.