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:
We started the process of determining a valid price forecast for Conagra Brands Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Conagra Brands Inc ranked in the 29th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 55.17%. The most interesting components of our discounted cash flow analysis for Conagra Brands Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 5.51 years, is -0.04% -- higher than only 23.55% of stocks in our DCF forecasting set.
As a business, CAG is generating more cash flow than 68.03% of positive cash flow stocks in the Consumer Defensive.
Conagra Brands Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 12.15% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Conagra Brands Inc? See COST, OLLI, PG, CL, and CLX.
Purple Carrot, known for its e-commerce subscription plant-based meal kit, announced their new 100% plant-based, single serve meals are now available in the frozen aisle at most Whole Foods Market stores across the country. Purple Carrot created these meals with the same flavor profiles and nutritional philosophies that are core to its meal kit offering.