Discounted Cash Flow (DCF) Analysis Levered

Campbell Soup Company (CPB)

$48.21

+0.31 (+0.65%)

All numbers are in Millions, Currency in USD

Stock DCF: 225.03 | 48.21 | 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	5,837	6,615	8,107	8,691	8,476	9,336.60	10,284.58	11,328.80	12,479.06	13,746.10
Revenue (%)
Operating Cash Flow	1,291	1,305	1,398	1,396	1,035	1,631.35	1,796.99	1,979.44	2,180.42	2,401.81
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	953	898	1,014	1,097	760	1,195.06	1,316.40	1,450.05	1,597.28	1,759.46

Weighted Average Cost Of Capital

Share price	$ 48.21
Beta	0.392
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	4.593
Total Debt	5,292
Total Equity	14,704.05
Total Capital	19,996.05
Debt Weighting	26.47
Equity Weighting	73.53
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	5,837	6,615	8,107	8,691	8,476	9,336.60	10,284.58	11,328.80	12,479.06	13,746.10
Operating Cash Flow	1,291	1,305	1,398	1,396	1,035	1,631.35	1,796.99	1,979.44	2,180.42	2,401.81
Capital Expenditure	-338	-407	-384	-299	-275	-436.29	-480.59	-529.39	-583.14	-642.35
Free Cash Flow	953	898	1,014	1,097	760	1,195.06	1,316.40	1,450.05	1,597.28	1,759.46
WACC
PV LFCF						1,147.22	1,213.11	1,282.79	1,356.47	1,434.39
SUM PV LFCF										6,433.98

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.17
Free cash flow (t + 1)	1,794.65
Terminal Value	82,702.76
Present Value of Terminal Value	67,422.78

Intrinsic Value

Enterprise Value	73,856.77
Net Debt	5,223
Equity Value	68,633.77
Shares Outstanding	305
Equity Value Per Share	225.03