DCF Tool

PFGC

Performance Food Group Company – Packaged Frozen Food Merchant Wholesalers
Built on the many proud histories of their family of companies, Performance Food Group is a customer-centric foodservice distribution leader headquartered in Richmond, Virginia. Grounded by roots that date back to a grocery peddler in 1885, PFG today has a nationwide network of over 100 distribution facilities, thousands of talented associates and valued suppliers across the country. With the goal of helping customers thrive, the company markets and delivers quality food and related products to over 200,000 locations including independent and chain restaurants, schools, business and industry locations, healthcare facilities, vending distributors, office coffee service distributors, big box retailers, theaters and convenience stores. Building strong relationships is core to PFG's success - from connecting associates with great career opportunities to connecting valued suppliers and quality products with PFG's broad and diverse customer base.
Analysis Results
Intrinsic Value $3,468.24
Latest Price $42.95
Relative Value 99% 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 60.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 60.9%, 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 4.38 4.12
2024 7.04 6.23
2025 11.3 9.43
2026 18.2 14.3
2027 29.3 21.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 696 billion. This corresponds to a present value of 483 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 55.7 billion. Adding in the terminal value gives a total present value of 539 billion.

There are presently 155.0 million outstanding shares, so the intrinsic value per share is 3468.24.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,022,000,000
Current Cash 11,600,000
Current Liabilities 3,633,000,000
Current Debt 2,639,400,000
Non-Cash Working Capital (NCWC) 5,016,800,000
Change in NCWC 2,149,500,000
EBIT 327,400,000
Tax Provision 54,600,000
Depreciation and Amortization 462,800,000
Capital Expenditure -215,500,000
Unlevered Free Cash Flow 2,617,221,903
Current Assets 3,580,400,000
Current Cash 11,100,000
Current Liabilities 2,527,200,000
Current Debt 1,825,200,000
Non-Cash Working Capital (NCWC) 2,867,300,000
Change in NCWC 2,204,500,000
EBIT 200,700,000
Tax Provision 14,000,000
Depreciation and Amortization 338,900,000
Capital Expenditure -188,800,000
Unlevered Free Cash Flow 2,503,932,541
Current Assets 3,453,900,000
Current Cash 420,700,000
Current Liabilities 2,618,700,000
Current Debt 248,300,000
Non-Cash Working Capital (NCWC) 662,800,000
Change in NCWC -519,000,000
EBIT -99,000,000
Tax Provision -108,100,000
Depreciation and Amortization 276,300,000
Capital Expenditure -158,000,000
Unlevered Free Cash Flow -499,700,000
Current Assets 2,670,600,000
Current Cash 14,700,000
Current Liabilities 1,699,300,000
Current Debt 225,200,000
Non-Cash Working Capital (NCWC) 1,181,800,000
Change in NCWC 186,600,000
EBIT 283,300,000
Tax Provision 51,500,000
Depreciation and Amortization 155,000,000
Capital Expenditure -139,100,000
Unlevered Free Cash Flow 418,965,597
Current Assets 2,203,500,000
Current Cash 7,500,000
Current Liabilities 1,470,000,000
Current Debt 269,200,000
Non-Cash Working Capital (NCWC) 995,200,000
Change in NCWC 71,800,000
EBIT 253,500,000
Tax Provision -5,100,000
Depreciation and Amortization 130,100,000
Capital Expenditure -140,100,000
Unlevered Free Cash Flow 315,300,000
Current Assets 2,084,900,000
Current Cash 8,100,000
Current Liabilities 1,383,300,000
Current Debt 229,900,000
Non-Cash Working Capital (NCWC) 923,400,000
Change in NCWC 150,100,000
EBIT 211,000,000
Tax Provision 61,400,000
Depreciation and Amortization 126,100,000
Capital Expenditure -140,200,000
Unlevered Free Cash Flow 264,847,812

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