Conagra Brands operates through three segments: Consumer Foods, Commercial Foods, and Private Brands. The company offers branded food products in various categories, such as meals, entrees, condiments, sides, snacks, and desserts to various retail channels, such as frozen, refrigerated, and shelf-stable temperature classes. The company was founded in 1919 and is based in Omaha, Nebraska.
CAG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CAG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Conagra Brands Inc ranked in the 32th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for CAG, they are:
Conagra Brands Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 10.44% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Defensive), Conagra Brands Inc has a reliance on debt greater than 72.54% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CHD, DLTR, MKC, STZ, and NWL can be thought of as valuation peers to CAG, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.