Discounted Cash Flow (DCF) Analysis Levered

The J. M. Smucker Company (SJM)

$122.54

+2.37 (+1.97%)
All numbers are in Millions, Currency in USD
Stock DCF: 274.37 | 122.54 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 7,8387,8018,002.707,998.908,529.208,714.628,904.079,097.639,295.419,497.48
Revenue (%)
Operating Cash Flow 1,141.201,254.801,5651,136.301,1881,365.321,3951,425.331,456.321,487.97
Operating Cash Flow (%)
Capital Expenditure -359.80-269.30-306.70-417.50-471-394.19-402.76-411.52-420.46-429.60
Capital Expenditure (%)
Free Cash Flow 781.40985.501,258.30718.80717971.13992.241,013.811,035.851,058.37

Weighted Average Cost Of Capital

Share price $ 122.54
Beta 0.237
Diluted Shares Outstanding 105.40
Cost of Debt
Tax Rate -892.39
After-tax Cost of Debt 4.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.278
Total Debt 4,314.20
Total Equity 12,915.72
Total Capital 17,229.92
Debt Weighting 25.04
Equity Weighting 74.96
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 7,8387,8018,002.707,998.908,529.208,714.628,904.079,097.639,295.419,497.48
Operating Cash Flow 1,141.201,254.801,5651,136.301,1881,365.321,3951,425.331,456.321,487.97
Capital Expenditure -359.80-269.30-306.70-417.50-471-394.19-402.76-411.52-420.46-429.60
Free Cash Flow 781.40985.501,258.30718.80717971.13992.241,013.811,035.851,058.37
WACC
PV LFCF 1,070.671,041.851,013.81986.53959.97
SUM PV LFCF 4,382.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.00
Free cash flow (t + 1) 1,079.54
Terminal Value 35,984.60
Present Value of Terminal Value 28,194.88

Intrinsic Value

Enterprise Value 32,576.98
Net Debt 3,658.40
Equity Value 28,918.58
Shares Outstanding 105.40
Equity Value Per Share 274.37