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Lamb Weston Holdings Inc – Frozen Fruit, Juice, and Vegetable Manufacturing
lamb weston is a leading supplier of frozen potato, sweet potato, appetizer, and vegetable products to restaurants and retailers around the world. for more than 60 years, lamb weston has led the frozen potato industry in innovation, introducing inventive products for our customers. lamb weston products can be found in more than 100 countries around the world. the business is headquartered in eagle, idaho, with manufacturing operations focused in the pacific northwest, primarily in the world’s best potato-growing region, the columbia river basin. lamb weston employs more than 6,000 people around the world in sales offices, manufacturing plants, and corporate offices.
Analysis Results
Intrinsic Value $241.88
Latest Price $101.07
Relative Value 58% 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 18.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.4%, 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 0.868 0.818
2025 1.03 0.913
2026 1.22 1.02
2027 1.44 1.14
2028 1.71 1.27
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 42.5 billion. This corresponds to a present value of 29.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.16 billion. Adding in the terminal value gives a total present value of 34.9 billion.

There are presently 144.0 million outstanding shares, so the intrinsic value per share is 241.88.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,127,200,000
Current Cash 304,800,000
Current Liabilities 1,360,200,000
Current Debt 213,800,000
Non-Cash Working Capital (NCWC) 676,000,000
Change in NCWC 208,300,000
EBIT 1,342,700,000
Tax Provision 224,600,000
Depreciation and Amortization 222,800,000
Capital Expenditure -736,000,000
Unlevered Free Cash Flow 793,316,481
Current Assets 1,659,600,000
Current Cash 525,000,000
Current Liabilities 699,100,000
Current Debt 32,200,000
Non-Cash Working Capital (NCWC) 467,700,000
Change in NCWC 55,700,000
EBIT 433,700,000
Tax Provision 71,800,000
Depreciation and Amortization 192,100,000
Capital Expenditure -306,400,000
Unlevered Free Cash Flow 260,909,827
Current Assets 1,781,700,000
Current Cash 783,500,000
Current Liabilities 618,200,000
Current Debt 32,000,000
Non-Cash Working Capital (NCWC) 412,000,000
Change in NCWC -49,200,000
EBIT 526,600,000
Tax Provision 90,500,000
Depreciation and Amortization 188,800,000
Capital Expenditure -147,200,000
Unlevered Free Cash Flow 402,278,716
Current Assets 2,302,600,000
Current Cash 1,364,000,000
Current Liabilities 1,024,900,000
Current Debt 547,500,000
Non-Cash Working Capital (NCWC) 461,200,000
Change in NCWC 18,300,000
EBIT 586,200,000
Tax Provision 112,300,000
Depreciation and Amortization 184,000,000
Capital Expenditure -167,700,000
Unlevered Free Cash Flow 483,137,390
Current Assets 961,500,000
Current Cash 12,200,000
Current Liabilities 552,800,000
Current Debt 46,400,000
Non-Cash Working Capital (NCWC) 442,900,000
Change in NCWC 38,500,000
EBIT 727,900,000
Tax Provision 133,600,000
Depreciation and Amortization 162,400,000
Capital Expenditure -334,200,000
Unlevered Free Cash Flow 437,951,417
Current Assets 930,400,000
Current Cash 55,600,000
Current Liabilities 518,700,000
Current Debt 48,300,000
Non-Cash Working Capital (NCWC) 404,400,000
Change in NCWC 98,800,000
EBIT 663,700,000
Tax Provision 121,200,000
Depreciation and Amortization 143,300,000
Capital Expenditure -306,800,000
Unlevered Free Cash Flow 454,036,150
Current Assets 858,200,000
Current Cash 57,100,000
Current Liabilities 555,400,000
Current Debt 59,900,000
Non-Cash Working Capital (NCWC) 305,600,000
Change in NCWC -66,800,000
EBIT 571,600,000
Tax Provision 170,200,000
Depreciation and Amortization 109,100,000
Capital Expenditure -287,400,000
Unlevered Free Cash Flow 135,892,006

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