Discounted Cash Flow (DCF) Analysis Levered

Campbell Soup Company (CPB)

$48.44

+1.04 (+2.19%)
All numbers are in Millions, Currency in USD
Stock DCF: 197.87 | 48.44 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 5,8376,6158,1078,6918,4769,336.6010,284.5811,328.8012,479.0613,746.10
Revenue (%)
Operating Cash Flow 1,2911,3051,3981,3961,0351,631.351,796.991,979.442,180.422,401.81
Operating Cash Flow (%)
Capital Expenditure -338-407-384-299-275-436.29-480.59-529.39-583.14-642.35
Capital Expenditure (%)
Free Cash Flow 9538981,0141,0977601,195.061,316.401,450.051,597.281,759.46

Weighted Average Cost Of Capital

Share price $ 48.44
Beta 0.390
Diluted Shares Outstanding 305
Cost of Debt
Tax Rate 25.00
After-tax Cost of Debt 2.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.967
Total Debt 5,292
Total Equity 14,774.20
Total Capital 20,066.20
Debt Weighting 26.37
Equity Weighting 73.63
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 5,8376,6158,1078,6918,4769,336.6010,284.5811,328.8012,479.0613,746.10
Operating Cash Flow 1,2911,3051,3981,3961,0351,631.351,796.991,979.442,180.422,401.81
Capital Expenditure -338-407-384-299-275-436.29-480.59-529.39-583.14-642.35
Free Cash Flow 9538981,0141,0977601,195.061,316.401,450.051,597.281,759.46
WACC
PV LFCF 1,144.251,206.851,272.871,342.501,415.94
SUM PV LFCF 6,382.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.44
Free cash flow (t + 1) 1,794.65
Terminal Value 73,551.22
Present Value of Terminal Value 59,190.99

Intrinsic Value

Enterprise Value 65,573.40
Net Debt 5,223
Equity Value 60,350.40
Shares Outstanding 305
Equity Value Per Share 197.87