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	8,685	8,107	8,691	8,476	8,562	8,542.51	8,523.06	8,503.65	8,484.29	8,464.98
Revenue (%)
Operating Cash Flow	1,305	1,398	1,396	1,035	1,181	1,270.05	1,267.16	1,264.28	1,261.40	1,258.53
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	898	1,014	1,097	760	939	946.56	944.41	942.26	940.11	937.97

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	8,685	8,107	8,691	8,476	8,562	8,542.51	8,523.06	8,503.65	8,484.29	8,464.98
Operating Cash Flow	1,305	1,398	1,396	1,035	1,181	1,270.05	1,267.16	1,264.28	1,261.40	1,258.53
Capital Expenditure	-407	-384	-299	-275	-242	-323.49	-322.75	-322.02	-321.29	-320.55
Free Cash Flow	898	1,014	1,097	760	939	946.56	944.41	942.26	940.11	937.97
WACC
PV LFCF						714.47	680.19	647.56	616.49	586.92
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