MKC Intrinsic Value

MKC

McCormick & Co., Inc. – All Other Miscellaneous Food Manufacturing

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	$164.80
Latest Price	$65.99
Relative Value	60% undervalued

Share results:

Thoughts on this result? Let us know.

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 10.0%.

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 10.0%, 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	1.02	0.981
2024	1.12	1.04
2025	1.23	1.1
2026	1.36	1.17
2027	1.49	1.24

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 44.8 billion. This corresponds to a present value of 35.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.54 billion. Adding in the terminal value gives a total present value of 41.4 billion.

There are presently 251.0 million outstanding shares, so the intrinsic value per share is 164.8.

Financial Statements

The following data was to determine the past cash flows.

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

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.