DCF Tool

MKC

McCormick & Co., Inc. – All Other Miscellaneous Food Manufacturing
McCormick & Company, Incorporated is a global leader in flavor. With over $5 billion in annual sales across 160 countries and territories, the company manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry including e-commerce channels, grocery, food manufacturers and foodservice businesses. Its most popular brands include McCormick, French's, Frank's RedHot, Stubb's, OLD BAY, Lawry's, Zatarain's, Ducros, Vahiné, Cholula, Schwartz, Kamis, DaQiao, Club House, Aeroplane and Gourmet Garden. Every day, no matter where or what you eat or drink, you can enjoy food flavored by McCormick.
Analysis Results
Intrinsic Value $217.60
Latest Price $91.96
Relative Value 58% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 14.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.6%, 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)
2022 1.15 1.11
2023 1.32 1.22
2024 1.51 1.35
2025 1.74 1.49
2026 1.99 1.65
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 59.7 billion. This corresponds to a present value of 47.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.83 billion. Adding in the terminal value gives a total present value of 54.4 billion.

There are presently 250.0 million outstanding shares, so the intrinsic value per share is 217.6.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,391,600,000
Current Cash 703,400,000
Current Liabilities 6,447,600,000
Current Debt 2,618,800,000
Non-Cash Working Capital (NCWC) -140,600,000
Change in NCWC 95,300,000
EBIT 2,285,400,000
Tax Provision 385,400,000
Depreciation and Amortization 372,600,000
Capital Expenditure -556,000,000
Unlevered Free Cash Flow 1,732,746,645
Current Assets 2,083,600,000
Current Cash 423,600,000
Current Liabilities 3,046,500,000
Current Debt 1,150,600,000
Non-Cash Working Capital (NCWC) -235,900,000
Change in NCWC -174,700,000
EBIT 1,059,600,000
Tax Provision 174,900,000
Depreciation and Amortization 165,000,000
Capital Expenditure -225,300,000
Unlevered Free Cash Flow 623,663,168
Current Assets 1,550,200,000
Current Cash 155,400,000
Current Liabilities 2,154,400,000
Current Debt 698,400,000
Non-Cash Working Capital (NCWC) -61,200,000
Change in NCWC -86,300,000
EBIT 1,019,400,000
Tax Provision 157,400,000
Depreciation and Amortization 158,800,000
Capital Expenditure -173,700,000
Unlevered Free Cash Flow 731,647,785
Current Assets 1,479,900,000
Current Cash 96,600,000
Current Liabilities 2,001,700,000
Current Debt 643,500,000
Non-Cash Working Capital (NCWC) 25,100,000
Change in NCWC -41,000,000
EBIT 976,900,000
Tax Provision -157,300,000
Depreciation and Amortization 150,700,000
Capital Expenditure -169,100,000
Unlevered Free Cash Flow 917,500,000
Current Assets 1,617,000,000
Current Cash 186,800,000
Current Liabilities 1,947,300,000
Current Debt 583,200,000
Non-Cash Working Capital (NCWC) 66,100,000
Change in NCWC -207,800,000
EBIT 799,300,000
Tax Provision 151,300,000
Depreciation and Amortization 125,200,000
Capital Expenditure -182,400,000
Unlevered Free Cash Flow 341,944,202
Current Assets 1,421,800,000
Current Cash 118,400,000
Current Liabilities 1,422,700,000
Current Debt 393,200,000
Non-Cash Working Capital (NCWC) 273,900,000
Change in NCWC -122,800,000
EBIT 692,800,000
Tax Provision 153,000,000
Depreciation and Amortization 108,700,000
Capital Expenditure -153,800,000
Unlevered Free Cash Flow 355,383,927
Current Assets 1,406,500,000
Current Cash 112,600,000
Current Liabilities 1,240,200,000
Current Debt 343,000,000
Non-Cash Working Capital (NCWC) 396,700,000
Change in NCWC -91,000,000
EBIT 646,600,000
Tax Provision 131,300,000
Depreciation and Amortization 105,900,000
Capital Expenditure -128,400,000
Unlevered Free Cash Flow 373,785,719
Current Assets 1,416,200,000
Current Cash 77,300,000
Current Liabilities 1,122,000,000
Current Debt 270,800,000
Non-Cash Working Capital (NCWC) 487,700,000
Change in NCWC 29,500,000
EBIT 637,600,000
Tax Provision 145,900,000
Depreciation and Amortization 102,700,000
Capital Expenditure -132,700,000
Unlevered Free Cash Flow 477,754,607
Current Assets 1,370,200,000
Current Cash 63,000,000
Current Liabilities 1,063,100,000
Current Debt 214,100,000
Non-Cash Working Capital (NCWC) 458,200,000
Change in NCWC 46,800,000
EBIT 614,000,000
Tax Provision 133,600,000
Depreciation and Amortization 106,000,000
Capital Expenditure -99,900,000
Unlevered Free Cash Flow 509,934,060
Current Assets 1,285,400,000
Current Cash 79,000,000
Current Liabilities 1,187,600,000
Current Debt 392,600,000
Non-Cash Working Capital (NCWC) 411,400,000
Change in NCWC 13,300,000
EBIT 599,800,000
Tax Provision 139,800,000
Depreciation and Amortization 102,800,000
Capital Expenditure -110,300,000
Unlevered Free Cash Flow 452,473,557

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.