Discounted Cash Flow (DCF) Analysis Levered

The J. M. Smucker Company (SJM)

$154.69

+3.60 (+2.38%)
All numbers are in Millions, Currency in USD
Stock DCF: 407.79 | 154.69 | 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 7,357.107,8387,8018,002.707,998.908,170.938,346.658,526.168,709.538,896.84
Revenue (%)
Operating Cash Flow 1,2181,141.201,254.801,5651,136.301,323.071,351.521,380.591,410.281,440.61
Operating Cash Flow (%)
Capital Expenditure -321.90-359.80-269.30-306.70-417.50-350.86-358.40-366.11-373.98-382.03
Capital Expenditure (%)
Free Cash Flow 896.10781.40985.501,258.30718.80972.21993.121,014.481,036.301,058.58

Weighted Average Cost Of Capital

Share price $ 154.69
Beta 0.214
Diluted Shares Outstanding 108.40
Cost of Debt
Tax Rate 25.14
After-tax Cost of Debt 2.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.388
Total Debt 4,606.90
Total Equity 16,768.40
Total Capital 21,375.30
Debt Weighting 21.55
Equity Weighting 78.45
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 7,357.107,8387,8018,002.707,998.908,170.938,346.658,526.168,709.538,896.84
Operating Cash Flow 1,2181,141.201,254.801,5651,136.301,323.071,351.521,380.591,410.281,440.61
Capital Expenditure -321.90-359.80-269.30-306.70-417.50-350.86-358.40-366.11-373.98-382.03
Free Cash Flow 896.10781.40985.501,258.30718.80972.21993.121,014.481,036.301,058.58
WACC
PV LFCF 934.73918.02901.61885.49869.66
SUM PV LFCF 4,509.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.01
Free cash flow (t + 1) 1,079.76
Terminal Value 53,719.18
Present Value of Terminal Value 44,132.03

Intrinsic Value

Enterprise Value 48,641.53
Net Debt 4,437
Equity Value 44,204.53
Shares Outstanding 108.40
Equity Value Per Share 407.79