General Mills sells products including ready-to-eat cereals; convenient meals, including meal kits, ethnic meals, pizza, soups, side dish mixes, frozen breakfast, and frozen entrees; snacks comprising grain, fruit, and savory snacks, as well as nutrition bars and frozen hot snacks; refrigerated yogurt products; ice creams; baking mixes and ingredients; refrigerated and frozen dough products; and frozen and shelf-stable vegetable products. The company was founded in 1928 and is based in Minneapolis, Minnesota.
GIS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for General Mills Inc. To summarize, we found that General Mills Inc ranked in the 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 47.33%. The most interesting components of our discounted cash flow analysis for General Mills Inc ended up being:
As a business, GIS is generating more cash flow than 83.31% of positive cash flow stocks in the Consumer Defensive.
General Mills Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than just 13.09% of tickers in our DCF set.
GIS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 13.09% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Defensive that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as GIS, try UN, KHC, DLTR, HELE, and TGT.
DUBLIN--(BUSINESS WIRE)--The "Gluten-free Products Market by Type (Bakery products, Snacks & RTE products, Condiments & dressings, Pizzas & pastas), Distribution channel (Conventional stores, Specialty stores and Drugstores & Pharmacies), Form & Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering. The global gluten-free products market size is estimated at USD 5.6 billion in 2020 and projected to grow at a CAGR of 8.1% to reach USD 8.
Credit Suisse upgrades General Mills (GIS) to an Outperform rating after having it slotted at Neutral. "We expect General Mills to retain more of the consumers who tried its brands during the pandemic than its food peers will. Consistent reinvestment into product quality, ecommerce, and media support has helped General...