DCF Tool


Nestle SA – Dry, Condensed, and Evaporated Dairy Product Manufacturing
Analysis Results
Intrinsic Value $322.66
Latest Price $116.88
Relative Value 64% 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 13.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.0%, 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)
2022 19.1 18.5
2023 21.6 20.3
2024 24.4 22.2
2025 27.6 24.3
2026 31.1 26.7
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 934 billion. This corresponds to a present value of 775 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 112 billion. Adding in the terminal value gives a total present value of 887 billion.

There are presently 2.75 billion outstanding shares, so the intrinsic value per share is 322.66.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 42,925,358,183
Current Cash 15,302,758,432
Current Liabilities 43,759,656,481
Current Debt 11,035,043,808
Non-Cash Working Capital (NCWC) -5,102,012,922
Change in NCWC -2,557,754,849
EBIT 25,991,180,274
Tax Provision 2,472,278,443
Depreciation and Amortization 3,761,449,732
Capital Expenditure -5,840,088,087
Unlevered Free Cash Flow 18,334,482,881
Current Assets 38,626,463,459
Current Cash 9,760,925,910
Current Liabilities 45,036,996,053
Current Debt 13,627,200,432
Non-Cash Working Capital (NCWC) -2,544,258,072
Change in NCWC -288,694,331
EBIT 17,987,813,865
Tax Provision 3,815,253,303
Depreciation and Amortization 3,928,633,787
Capital Expenditure -4,947,924,343
Unlevered Free Cash Flow 12,833,543,558
Current Assets 36,848,451,532
Current Cash 10,604,145,979
Current Liabilities 42,998,298,251
Current Debt 14,498,428,957
Non-Cash Working Capital (NCWC) -2,255,563,741
Change in NCWC -4,656,536,307
EBIT 17,432,831,625
Tax Provision 3,264,006,348
Depreciation and Amortization 3,836,421,516
Capital Expenditure -4,350,975,223
Unlevered Free Cash Flow 8,833,346,223
Current Assets 41,609,077,828
Current Cash 10,453,262,217
Current Liabilities 43,666,039,532
Current Debt 14,911,196,488
Non-Cash Working Capital (NCWC) 2,400,972,566
Change in NCWC 4,363,780,371
EBIT 16,078,194,988
Tax Provision 3,489,832,906
Depreciation and Amortization 3,982,001,838
Capital Expenditure -4,536,072,431
Unlevered Free Cash Flow 15,911,999,641
Current Assets 32,890,569,099
Current Cash 8,780,014,298
Current Liabilities 36,838,663,507
Current Debt 10,765,300,901
Non-Cash Working Capital (NCWC) -1,962,807,804
Change in NCWC 644,050,956
EBIT 15,517,523,234
Tax Provision 2,839,480,942
Depreciation and Amortization 3,297,231,018
Capital Expenditure -1,496,883,620
Unlevered Free Cash Flow 13,782,102,157
Current Assets 31,484,722,367
Current Cash 9,134,323,048
Current Liabilities 36,864,500,625
Current Debt 11,907,242,545
Non-Cash Working Capital (NCWC) -2,606,858,761
Change in NCWC -2,543,344,681
EBIT 14,517,049,130
Tax Provision 4,336,248,667
Depreciation and Amortization 3,077,527,946
Capital Expenditure -4,610,396,271
Unlevered Free Cash Flow 5,622,564,628
Current Assets 29,674,181,440
Current Cash 5,852,368,800
Current Liabilities 33,592,899,360
Current Debt 9,707,572,640
Non-Cash Working Capital (NCWC) -63,514,080
Change in NCWC -1,069,926,730
EBIT 14,599,164,960
Tax Provision 3,331,968,800
Depreciation and Amortization 3,203,932,480
Capital Expenditure -4,329,039,040
Unlevered Free Cash Flow 8,626,317,686

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