Mondelez International manufactures and markets snack food and beverage products worldwide, including brands like Nabisco and Oreo biscuits, Cadbury, Cadbury Dairy Milk, and Trident gum. The company was founded in 2000 and is based in Deerfield, Illinois.
MDLZ 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 Mondelez International Inc. To summarize, we found that Mondelez International Inc ranked in the 20th 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 MDLZ, they are:
In the past 5.73 years, Mondelez International Inc has a compound free cash flow growth rate of -0.08%; that's higher than only 18.63% of free cash flow generating stocks in the Consumer Defensive sector.
Mondelez International Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 22.39% of tickers in our DCF set.
MDLZ'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 merely 22.39% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SMPL, JJSF, PPC, PEP, and SPB can be thought of as valuation peers to MDLZ, in the sense that they are in the Consumer Defensive sector and have a similar price forecast based on DCF valuation.
Moody's Investors Service, Inc. ("Moody's") today assigned a Baa1 rating to $1 billion 0.625% senior unsecured notes offered today by Mondelez International, Inc. ("Mondelez"). As of March 31, 2020 Mondelez had $3.7 billion of commercial paper outstanding.
The grim milestones of 10 million global coronavirus cases and more than 500,000 deaths, along with spikes in a number of U.S. states, haven't deterred investors on Monday. U.S. stock futures pointed higher before the open, despite more indications a second wave may be around the corner.