DCF Tool

MKC

mccormick & company, incorporated (nyse: mkc) is a global leader in flavor and one of the most respected and familiar names in the industry. in business for more than 125 years, mccormick manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry—retail outlets, food manufacturers and food service businesses. the mccormick name represents a trusted source of flavor in millions of kitchens around the globe—in homes and in restaurants. partnerships with farmers and suppliers around the world allow us to provide great-tasting, quality spices with year-over-year consistency that you can trust. no exceptions. our herbs and spices come from 40 different countries, while our brands reach consumers in more than 135 countries and territories. our passion for quality is matched only by our commitment to an innovative and energetic company culture. at mccormick, we believe in respect, recognition, inclusion and collaborat
Analysis Results
Intrinsic Value $129.51
Latest Price $71.76
Relative Value 45% 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 8.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.1%, 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 0.988 0.936
2025 1.07 0.959
2026 1.16 0.981
2027 1.25 1.0
2028 1.35 1.03
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 38.4 billion. This corresponds to a present value of 27.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.91 billion. Adding in the terminal value gives a total present value of 32.6 billion.

There are presently 252.0 million outstanding shares, so the intrinsic value per share is 129.51.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,001,600,000
Current Cash 166,600,000
Current Liabilities 3,098,900,000
Current Debt 1,071,500,000
Non-Cash Working Capital (NCWC) -192,400,000
Change in NCWC -320,000,000
EBIT 1,080,600,000
Tax Provision 174,500,000
Depreciation and Amortization 199,300,000
Capital Expenditure -263,900,000
Unlevered Free Cash Flow 475,482,282
Current Assets 2,386,700,000
Current Cash 334,000,000
Current Liabilities 3,432,400,000
Current Debt 1,507,300,000
Non-Cash Working Capital (NCWC) 127,600,000
Change in NCWC 197,900,000
EBIT 955,200,000
Tax Provision 168,600,000
Depreciation and Amortization 200,600,000
Capital Expenditure -262,000,000
Unlevered Free Cash Flow 902,366,917
Current Assets 2,195,800,000
Current Cash 351,700,000
Current Liabilities 3,223,800,000
Current Debt 1,309,400,000
Non-Cash Working Capital (NCWC) -70,300,000
Change in NCWC 165,600,000
EBIT 1,142,700,000
Tax Provision 192,700,000
Depreciation and Amortization 186,300,000
Capital Expenditure -278,000,000
Unlevered Free Cash Flow 984,323,322
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

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