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General Mills, Inc. – Breakfast Cereal Manufacturing
General Mills is a leading global food company whose purpose is to make food the world loves. Its brands include Cheerios, Annie's, Yoplait, Nature Valley, Häagen-Dazs, Betty Crocker, Pillsbury, Old El Paso, Wanchai Ferry, Yoki, BLUE and more. Headquartered in Minneapolis, Minnesota, USA, General Mills generated fiscal 2020 net sales of U.S. $17.6 billion. In addition, General Mills' share of non-consolidated joint venture net sales totaled U.S. $1.0 billion.
Analysis Results
Intrinsic Value $200.92
Latest Price $80.75
Relative Value 60% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 7.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 3.13 3.03
2024 3.35 3.15
2025 3.59 3.26
2026 3.85 3.39
2027 4.12 3.51
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 124 billion. This corresponds to a present value of 102 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 16.3 billion. Adding in the terminal value gives a total present value of 118 billion.

There are presently 590.0 million outstanding shares, so the intrinsic value per share is 200.92.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,089,800,000
Current Cash 819,200,000
Current Liabilities 8,019,900,000
Current Debt 2,485,600,000
Non-Cash Working Capital (NCWC) -1,263,700,000
Change in NCWC 287,700,000
EBIT 3,366,900,000
Tax Provision 586,300,000
Depreciation and Amortization 570,300,000
Capital Expenditure -568,700,000
Unlevered Free Cash Flow 3,061,850,356
Current Assets 5,754,500,000
Current Cash 1,865,200,000
Current Liabilities 8,265,800,000
Current Debt 2,825,100,000
Non-Cash Working Capital (NCWC) -1,551,400,000
Change in NCWC -113,900,000
EBIT 3,486,400,000
Tax Provision 629,100,000
Depreciation and Amortization 601,300,000
Capital Expenditure -530,800,000
Unlevered Free Cash Flow 2,705,783,019
Current Assets 5,121,300,000
Current Cash 1,677,800,000
Current Liabilities 7,491,500,000
Current Debt 2,610,500,000
Non-Cash Working Capital (NCWC) -1,437,500,000
Change in NCWC -952,100,000
EBIT 3,069,400,000
Tax Provision 480,500,000
Depreciation and Amortization 594,700,000
Capital Expenditure -460,800,000
Unlevered Free Cash Flow 1,703,194,686
Current Assets 4,186,500,000
Current Cash 450,000,000
Current Liabilities 7,087,100,000
Current Debt 2,865,200,000
Non-Cash Working Capital (NCWC) -485,400,000
Change in NCWC -18,100,000
EBIT 2,893,000,000
Tax Provision 367,800,000
Depreciation and Amortization 620,100,000
Capital Expenditure -537,600,000
Unlevered Free Cash Flow 2,463,414,206
Current Assets 4,123,700,000
Current Cash 399,000,000
Current Liabilities 7,341,900,000
Current Debt 3,149,900,000
Non-Cash Working Capital (NCWC) -467,300,000
Change in NCWC -270,600,000
EBIT 2,759,600,000
Tax Provision 57,300,000
Depreciation and Amortization 618,800,000
Capital Expenditure -622,700,000
Unlevered Free Cash Flow 2,413,882,110
Current Assets 4,061,400,000
Current Cash 766,100,000
Current Liabilities 5,330,800,000
Current Debt 1,838,800,000
Non-Cash Working Capital (NCWC) -196,700,000
Change in NCWC 271,300,000
EBIT 2,847,500,000
Tax Provision 655,200,000
Depreciation and Amortization 603,600,000
Capital Expenditure -684,400,000
Unlevered Free Cash Flow 2,246,215,422
Current Assets 3,937,200,000
Current Cash 763,700,000
Current Liabilities 5,014,700,000
Current Debt 1,373,200,000
Non-Cash Working Capital (NCWC) -468,000,000
Change in NCWC -645,600,000
EBIT 2,799,000,000
Tax Provision 755,200,000
Depreciation and Amortization 608,100,000
Capital Expenditure -729,300,000
Unlevered Free Cash Flow 1,183,963,723
Current Assets 3,785,700,000
Current Cash 334,200,000
Current Liabilities 4,890,100,000
Current Debt 1,616,200,000
Non-Cash Working Capital (NCWC) 177,600,000
Change in NCWC -287,400,000
EBIT 2,705,500,000
Tax Provision 586,800,000
Depreciation and Amortization 588,300,000
Capital Expenditure -712,400,000
Unlevered Free Cash Flow 1,434,078,323
Current Assets 4,393,500,000
Current Cash 867,300,000
Current Liabilities 5,423,500,000
Current Debt 2,362,300,000
Non-Cash Working Capital (NCWC) 465,000,000
Change in NCWC 158,400,000
EBIT 2,985,100,000
Tax Provision 883,300,000
Depreciation and Amortization 585,400,000
Capital Expenditure -663,500,000
Unlevered Free Cash Flow 2,104,699,413
Current Assets 4,298,900,000
Current Cash 741,400,000
Current Liabilities 5,293,900,000
Current Debt 2,043,000,000
Non-Cash Working Capital (NCWC) 306,600,000
Change in NCWC -338,100,000
EBIT 2,970,400,000
Tax Provision 741,200,000
Depreciation and Amortization 588,000,000
Capital Expenditure -613,900,000
Unlevered Free Cash Flow 1,770,442,799
Current Assets 3,691,400,000
Current Cash 471,200,000
Current Liabilities 3,843,200,000
Current Debt 1,267,700,000
Non-Cash Working Capital (NCWC) 644,700,000
Change in NCWC -321,100,000
EBIT 2,752,200,000
Tax Provision 709,600,000
Depreciation and Amortization 541,500,000
Capital Expenditure -675,900,000
Unlevered Free Cash Flow 1,447,106,264

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