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Discounted Cash Flow (DCF) Analysis Unlevered


General Mills Inc.

General Mills Inc. (GIS)

Consumer Defensive

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 17,774.1017,909.1817,629.8016,563.2015,619.0915,739.3616,864.7316,734.8716,606.0116,478.1416,351.26
Revenue (%)
EBITDA 3,501.503,596.162,711.463,363.993,211.293,180.933,261.643,241.543,216.583,191.823,167.24
EBITDA (%)
EBIT 2,913.173,010.532,122.632,756.122,608.392,562.372,641.022,642.442,622.092,601.902,581.86
EBIT (%)
Depreciation 588.32585.63588.84607.87602.90618.56620.62599.11594.50589.92585.38
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 741.18866.80334.97763.56765.34399.78450.29612.50607.78603.10598.46
Total Cash (%)
Account Receivables 1,446.811,482.881,387.471,361.491,430.711,684.111,679.731,489.401,477.931,466.551,455.26
Account Receivables (%)
Inventories 1,546.351,559.891,540.841,414.501,483.811,641.621,559.991,526.221,514.471,502.811,491.24
Inventories (%)
Accounts Payable 1,423.711,611.831,683.652,047.212,119.512,746.522,853.512,076.802,060.812,044.942,029.19
Accounts Payable (%)
Capital Expenditure -590.10-657.27-701.67-725.47-679.43-621.70-522.81-639.27-634.35-629.47-624.62
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 53.84
Diluted Shares Outstanding 598.79
Cost of Debt
Tax Rate 17.34
After-tax Cost of Debt -0.82
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.77
Total Debt 11,624.80
Total Equity 32,238.89
Total Capital 43,863.69
Debt Weighting 26.50
Equity Weighting 73.50
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 17,774.1017,909.1817,629.8016,563.2015,619.0915,739.3616,864.7316,734.8716,606.0116,478.1416,351.26
EBITDA 3,501.503,596.162,711.463,363.993,211.293,180.933,261.643,241.543,216.583,191.823,167.24
EBIT 2,913.173,010.532,122.632,756.122,608.392,562.372,641.022,642.442,622.092,601.902,581.86
Tax Rate 28.55%32.62%32.45%30.79%28.33%2.62%17.34%24.67%24.67%24.67%24.67%
EBIAT 2,081.542,028.441,433.751,907.461,869.422,495.272,182.931,990.481,975.151,959.941,944.85
Depreciation 588.32585.63588.84607.87602.90618.56620.62599.11594.50589.92585.38
Accounts Receivable --36.0795.4225.97-69.21-253.404.38190.3211.4711.3811.29
Inventories --13.5419.05126.35-69.32-157.8081.6333.7711.7511.6611.57
Accounts Payable -188.1271.82363.5772.30627.01106.99-776.71-15.99-15.87-15.75
Capital Expenditure -67.1744.4023.80-46.04-57.73-98.90116.47-4.92-4.88-4.85
UFCF 2,669.872,819.752,253.273,055.012,360.053,271.912,897.662,153.432,571.952,552.152,532.50
WACC
PV UFCF 1,862.042,068.011,908.211,760.75
SUM PV UFCF 19,427.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.54
Free cash flow (t + 1) 2,633.80
Terminal Value 74,401.00
Present Value of Terminal Value 51,728.35

Intrinsic Value

Enterprise Value 71,156.32
Net Debt 11,174.51
Equity Value 59,981.80
Shares Outstanding 598.79
Equity Value Per Share 100.17