Discounted Cash Flow (DCF) Analysis Levered

Campbell Soup Company (CPB)

$51.79

+0.91 (+1.79%)
All numbers are in Millions, Currency in USD
Stock DCF: 86.73 | 51.79 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 8,6858,1078,6918,4768,5628,542.518,523.068,503.658,484.298,464.98
Revenue (%)
Operating Cash Flow 1,3051,3981,3961,0351,1811,270.051,267.161,264.281,261.401,258.53
Operating Cash Flow (%)
Capital Expenditure -407-384-299-275-242-323.49-322.75-322.02-321.29-320.55
Capital Expenditure (%)
Free Cash Flow 8981,0141,097760939946.56944.41942.26940.11937.97

Weighted Average Cost Of Capital

Share price $ 51.79
Beta 0.379
Diluted Shares Outstanding 302
Cost of Debt
Tax Rate 22.36
After-tax Cost of Debt 2.90%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.409
Total Debt 5,049
Total Equity 15,640.58
Total Capital 20,689.58
Debt Weighting 24.40
Equity Weighting 75.60
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 8,6858,1078,6918,4768,5628,542.518,523.068,503.658,484.298,464.98
Operating Cash Flow 1,3051,3981,3961,0351,1811,270.051,267.161,264.281,261.401,258.53
Capital Expenditure -407-384-299-275-242-323.49-322.75-322.02-321.29-320.55
Free Cash Flow 8981,0141,097760939946.56944.41942.26940.11937.97
WACC
PV LFCF 714.47680.19647.56616.49586.92
SUM PV LFCF 4,103.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.80
Free cash flow (t + 1) 956.73
Terminal Value 34,169.02
Present Value of Terminal Value 27,028.76

Intrinsic Value

Enterprise Value 31,131.80
Net Debt 4,940
Equity Value 26,191.80
Shares Outstanding 302
Equity Value Per Share 86.73