Kellogg Company manufactures and markets ready-to-eat cereal and convenience foods. The company operates through U.S. Morning Foods, U.S. Snacks, U.S. Specialty, North America Other, Europe, Latin America, and Asia Pacific segments. The company was founded in 1906 and is based in Battle Creek, Michigan.
K Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Kellogg Co with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Kellogg Co ranked in the 12th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 82.17%. In terms of the factors that were most noteworthy in this DCF analysis for K, they are:
The company's compound free cash flow growth rate over the past 5.56 years comes in at -0.11%; that's greater than only 16.2% of US stocks we're applying DCF forecasting to.
As a business, K is generating more cash flow than 59.02% of positive cash flow stocks in the Consumer Defensive.
Kellogg Co's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 21.4% 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 Kellogg Co? See NATR, SDI, EPC, IBA, and BF.B.