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Tyson Foods, Inc. – Dog and Cat Food Manufacturing
Tyson Foods, Inc. is one of the world's largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the Company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it's available and raise the world's expectations for how much good food can do. Headquartered in Springdale, Arkansas, the Company had 139,000 team members at October 3, 2020. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it.
Analysis Results
Intrinsic Value $458.66
Latest Price $65.93
Relative Value 86% 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 11.6%.

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 11.6%, 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 3.34 3.17
2023 3.73 3.36
2024 4.16 3.56
2025 4.65 3.77
2026 5.18 3.99
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 157 billion. This corresponds to a present value of 115 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 17.9 billion. Adding in the terminal value gives a total present value of 133 billion.

There are presently 290.0 million outstanding shares, so the intrinsic value per share is 458.66.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 9,822,000,000
Current Cash 2,507,000,000
Current Liabilities 6,325,000,000
Current Debt 1,067,000,000
Non-Cash Working Capital (NCWC) 2,057,000,000
Change in NCWC -435,000,000
EBIT 4,396,000,000
Tax Provision 981,000,000
Depreciation and Amortization 1,214,000,000
Capital Expenditure -1,209,000,000
Unlevered Free Cash Flow 2,898,819,599
Current Assets 7,598,000,000
Current Cash 1,420,000,000
Current Liabilities 4,234,000,000
Current Debt 548,000,000
Non-Cash Working Capital (NCWC) 2,492,000,000
Change in NCWC -782,000,000
EBIT 3,008,000,000
Tax Provision 593,000,000
Depreciation and Amortization 1,192,000,000
Capital Expenditure -1,199,000,000
Unlevered Free Cash Flow 1,549,426,426
Current Assets 7,169,000,000
Current Cash 484,000,000
Current Liabilities 5,513,000,000
Current Debt 2,102,000,000
Non-Cash Working Capital (NCWC) 3,274,000,000
Change in NCWC 976,000,000
EBIT 2,827,000,000
Tax Provision 396,000,000
Depreciation and Amortization 1,098,000,000
Capital Expenditure -1,259,000,000
Unlevered Free Cash Flow 3,181,493,212
Current Assets 5,688,000,000
Current Cash 270,000,000
Current Liabilities 5,031,000,000
Current Debt 1,911,000,000
Non-Cash Working Capital (NCWC) 2,298,000,000
Change in NCWC -516,000,000
EBIT 3,055,000,000
Tax Provision -282,000,000
Depreciation and Amortization 943,000,000
Capital Expenditure -1,200,000,000
Unlevered Free Cash Flow 2,282,000,000
Current Assets 6,258,000,000
Current Cash 318,000,000
Current Liabilities 4,032,000,000
Current Debt 906,000,000
Non-Cash Working Capital (NCWC) 2,814,000,000
Change in NCWC 958,000,000
EBIT 2,931,000,000
Tax Provision 850,000,000
Depreciation and Amortization 761,000,000
Capital Expenditure -1,069,000,000
Unlevered Free Cash Flow 2,632,997,716
Current Assets 4,888,000,000
Current Cash 349,000,000
Current Liabilities 2,762,000,000
Current Debt 79,000,000
Non-Cash Working Capital (NCWC) 1,856,000,000
Change in NCWC -15,000,000
EBIT 2,833,000,000
Tax Provision 826,000,000
Depreciation and Amortization 705,000,000
Capital Expenditure -695,000,000
Unlevered Free Cash Flow 1,927,284,834
Current Assets 5,381,000,000
Current Cash 690,000,000
Current Liabilities 3,535,000,000
Current Debt 715,000,000
Non-Cash Working Capital (NCWC) 1,871,000,000
Change in NCWC -757,000,000
EBIT 2,169,000,000
Tax Provision 697,000,000
Depreciation and Amortization 711,000,000
Capital Expenditure -854,000,000
Unlevered Free Cash Flow 482,017,699
Current Assets 6,221,000,000
Current Cash 439,000,000
Current Liabilities 3,797,000,000
Current Debt 643,000,000
Non-Cash Working Capital (NCWC) 2,628,000,000
Change in NCWC 667,000,000
EBIT 1,441,000,000
Tax Provision 396,000,000
Depreciation and Amortization 530,000,000
Capital Expenditure -632,000,000
Unlevered Free Cash Flow 1,550,220,447
Current Assets 5,604,000,000
Current Cash 1,146,000,000
Current Liabilities 3,010,000,000
Current Debt 513,000,000
Non-Cash Working Capital (NCWC) 1,961,000,000
Change in NCWC -56,000,000
EBIT 1,375,000,000
Tax Provision 409,000,000
Depreciation and Amortization 519,000,000
Capital Expenditure -558,000,000
Unlevered Free Cash Flow 832,605,409
Current Assets 5,403,000,000
Current Cash 1,071,000,000
Current Liabilities 2,830,000,000
Current Debt 515,000,000
Non-Cash Working Capital (NCWC) 2,017,000,000
Change in NCWC 257,000,000
EBIT 1,264,000,000
Tax Provision 351,000,000
Depreciation and Amortization 499,000,000
Capital Expenditure -690,000,000
Unlevered Free Cash Flow 851,398,058

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