TSN Intrinsic Value

TSN

Tyson Foods, Inc. – Poultry Processing

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	$665.93
Latest Price	$58.23
Relative Value	91% undervalued

Share results:

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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 15.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.9%, 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	4.74	4.59
2024	5.49	5.14
2025	6.37	5.77
2026	7.38	6.46
2027	8.55	7.24

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 256 billion. This corresponds to a present value of 210 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 29.2 billion. Adding in the terminal value gives a total present value of 239 billion.

There are presently 360.0 million outstanding shares, so the intrinsic value per share is 665.93.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	9,630,000,000
Current Cash	1,031,000,000
Current Liabilities	5,313,000,000
Current Debt	459,000,000
Non-Cash Working Capital (NCWC)	3,745,000,000
Change in NCWC	1,688,000,000
EBIT	4,410,000,000
Tax Provision	900,000,000
Depreciation and Amortization	1,202,000,000
Capital Expenditure	-1,887,000,000
Unlevered Free Cash Flow	4,456,383,947

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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