DCF Tool

PPC

Pilgrim`s Pride Corp. – Dog and Cat Food Manufacturing
Pilgrim's employs approximately 55,400 people and operates protein processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, and continental Europe. The Company's primary distribution is through retailers and foodservice distributors.
Analysis Results
Intrinsic Value $35.34
Latest Price $25.10
Relative Value 29% undervalued
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Cash Flow (Millions)
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 -4.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -4.3%, 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 (million) Present value (million)
2022 374 354
2023 357 322
2024 342 292
2025 327 265
2026 313 241
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9430 million. This corresponds to a present value of 6880 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1470 million. Adding in the terminal value gives a total present value of 8360 million.

There are presently 236.0 million outstanding shares, so the intrinsic value per share is 35.34.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,305,954,000
Current Cash 427,661,000
Current Liabilities 2,390,823,000
Current Debt 103,385,000
Non-Cash Working Capital (NCWC) 590,855,000
Change in NCWC 41,458,000
EBIT 216,966,000
Tax Provision 61,122,000
Depreciation and Amortization 380,824,000
Capital Expenditure -381,671,000
Unlevered Free Cash Flow 114,039,865
Current Assets 2,902,711,000
Current Cash 547,624,000
Current Liabilities 1,937,580,000
Current Debt 131,890,000
Non-Cash Working Capital (NCWC) 549,397,000
Change in NCWC -264,775,000
EBIT 245,586,000
Tax Provision 66,755,000
Depreciation and Amortization 337,104,000
Capital Expenditure -354,762,000
Unlevered Free Cash Flow -138,154,544
Current Assets 2,598,236,000
Current Cash 260,568,000
Current Liabilities 1,648,155,000
Current Debt 124,659,000
Non-Cash Working Capital (NCWC) 814,172,000
Change in NCWC 114,244,000
EBIT 690,484,000
Tax Provision 161,009,000
Depreciation and Amortization 287,230,000
Capital Expenditure -348,120,000
Unlevered Free Cash Flow 563,812,028
Current Assets 2,234,657,000
Current Cash 338,386,000
Current Liabilities 1,296,223,000
Current Debt 99,880,000
Non-Cash Working Capital (NCWC) 699,928,000
Change in NCWC 113,875,000
EBIT 500,451,000
Tax Provision 85,423,000
Depreciation and Amortization 279,657,000
Capital Expenditure -348,666,000
Unlevered Free Cash Flow 416,639,843
Current Assets 2,516,288,000
Current Cash 581,510,000
Current Liabilities 1,452,522,000
Current Debt 103,797,000
Non-Cash Working Capital (NCWC) 586,053,000
Change in NCWC 188,643,000
EBIT 1,082,097,000
Tax Provision 263,899,000
Depreciation and Amortization 277,792,000
Capital Expenditure -339,872,000
Unlevered Free Cash Flow 917,880,850
Current Assets 1,322,368,000
Current Cash 120,328,000
Current Liabilities 868,301,000
Current Debt 63,671,000
Non-Cash Working Capital (NCWC) 397,410,000
Change in NCWC -135,173,000
EBIT 714,579,000
Tax Provision 232,906,000
Depreciation and Amortization 180,515,000
Capital Expenditure -272,467,000
Unlevered Free Cash Flow 240,024,507
Current Assets 1,746,224,000
Current Cash 439,638,000
Current Liabilities 846,960,000
Current Debt 72,957,000
Non-Cash Working Capital (NCWC) 532,583,000
Change in NCWC -79,077,000
EBIT 1,050,496,000
Tax Provision 346,796,000
Depreciation and Amortization 158,975,000
Capital Expenditure -175,764,000
Unlevered Free Cash Flow 587,664,625
Current Assets 1,885,079,000
Current Cash 576,143,000
Current Liabilities 744,858,000
Current Debt 47,582,000
Non-Cash Working Capital (NCWC) 611,660,000
Change in NCWC -94,428,000
EBIT 1,205,401,000
Tax Provision 390,953,000
Depreciation and Amortization 155,824,000
Capital Expenditure -171,443,000
Unlevered Free Cash Flow 667,869,434
Current Assets 1,928,982,000
Current Cash 605,108,000
Current Liabilities 1,083,398,000
Current Debt 465,612,000
Non-Cash Working Capital (NCWC) 706,088,000
Change in NCWC -112,235,000
EBIT 664,524,000
Tax Provision 24,227,000
Depreciation and Amortization 150,523,000
Capital Expenditure -116,223,000
Unlevered Free Cash Flow 558,538,292
Current Assets 1,542,728,000
Current Cash 68,180,000
Current Liabilities 730,177,000
Current Debt 73,952,000
Non-Cash Working Capital (NCWC) 818,323,000
Change in NCWC 64,500,000
EBIT 258,791,000
Tax Provision -20,980,000
Depreciation and Amortization 147,414,000
Capital Expenditure -90,327,000
Unlevered Free Cash Flow 380,378,000

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