Discounted Cash Flow (DCF) Analysis Levered

The J. M. Smucker Company (SJM)

$151.6

+1.58 (+1.05%)
All numbers are in Millions, Currency in USD
Stock DCF: 359.52 | 151.6 | 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 $ 151.6
Beta 0.224
Diluted Shares Outstanding 112.40
Cost of Debt
Tax Rate 25.14
After-tax Cost of Debt 2.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.610
Total Debt 4,606.90
Total Equity 17,039.84
Total Capital 21,646.74
Debt Weighting 21.28
Equity Weighting 78.72
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 933.20915.03897.20879.72862.59
SUM PV LFCF 4,487.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.18
Free cash flow (t + 1) 1,079.76
Terminal Value 49,530.07
Present Value of Terminal Value 40,359.63

Intrinsic Value

Enterprise Value 44,847.37
Net Debt 4,437
Equity Value 40,410.37
Shares Outstanding 112.40
Equity Value Per Share 359.52