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:
Below please find a table outlining a discounted cash flow forecast for GIS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that General Mills Inc ranked in the 45th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 13.67%. In terms of the factors that were most noteworthy in this DCF analysis for GIS, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 6.33; that's higher than 58.34% of US stocks in the Consumer Defensive sector that have positive free cash flow.
General Mills Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 17.3% 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 HSY, PM, MTEX, GHC, and TPB.
MINNEAPOLIS--(BUSINESS WIRE)--General Mills, Inc. (NYSE: GIS) plans to report results for its fiscal 2020 fourth quarter and full year on Wednesday, July 1, 2020. A press release will be issued that morning, followed by a webcast conference call of those results beginning at 7:30 a.m. CT (8:30 a.m. ET). Interested investors can access this webcast and supporting slides at www.generalmills.com/investors. About General Mills General Mills is a leading global food company whose purpose is to make