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General Mills, Inc. – Breakfast Cereal Manufacturing
one of the world's leading food companies, general mills operates in more than 100 countries and markets more than 100 consumer brands, including cheerios, yoplait, betty crocker, pillsbury, häagen-dazs, nature valley, green giant, old el paso, progresso, cascadian farm, muir glen, and more. headquartered in minneapolis, minnesota, usa.
Analysis Results
Intrinsic Value $163.02
Latest Price $64.78
Relative Value 60% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 5.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.1%, 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)
2024 2.91 2.78
2025 3.06 2.79
2026 3.21 2.8
2027 3.37 2.81
2028 3.55 2.82
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 106 billion. This corresponds to a present value of 80.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 14.0 billion. Adding in the terminal value gives a total present value of 94.8 billion.

There are presently 581.0 million outstanding shares, so the intrinsic value per share is 163.02.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,176,400,000
Current Cash 702,700,000
Current Liabilities 7,535,700,000
Current Debt 1,740,800,000
Non-Cash Working Capital (NCWC) -1,321,200,000
Change in NCWC -57,500,000
EBIT 3,126,700,000
Tax Provision 612,200,000
Depreciation and Amortization 546,600,000
Capital Expenditure -689,500,000
Unlevered Free Cash Flow 2,332,170,712
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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