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GuruFocus has detected 5 Warning Signs with Campbell Soup Co $CPB.
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Campbell Soup Co (NYSE:CPB)
Intrinsic Value: Projected FCF
$29.37 (As of Today)

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today, Campbell Soup Co's projected FCF intrinsic value is $29.37. The stock price of Campbell Soup Co is $53.79. Therefore, Campbell Soup Co's Price to Intrinsic Value: Projected FCF Ratio of today is 1.8.

CPB' s Price-to-Intrinsic-Value-Projected-FCF Range Over the Past 10 Years
Min: 1.04   Max: 3.14
Current: 1.83

1.04
3.14

During the past 13 years, the highest Price to Intrinsic Value: Projected FCF Ratio of Campbell Soup Co was 3.14. The lowest was 1.04. And the median was 1.69.

CPB's Price-to-Intrinsic-Value-Projected-FCF is ranked lower than
59% of the 744 Companies
in the Global Packaged Foods industry.

( Industry Median: 1.54 vs. CPB: 1.83 )

Definition

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of total equity.

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + 0.8*Total Equity(most recent))/Shares Outstanding

In the case of negative total equity, the following formula is used (see the Total Equity section for the reason):

Value = ((Growth Multiple)*Free Cash Flow(6 year avg) + Total Equity(most recent)/0.8)/Shares Outstanding


Here Campbell Soup Co's FCF(6 year avg) is calculate as

Campbell Soup Co Quarterly Data

201501201504201507201510201601201604201607201610201701201704
total_freecashflow 31528873173428385136173375268
201207201210201301201304201307201310201401201404201407201410
total_freecashflow 1324034927024-14250329-13126
201107201110201201201204
total_freecashflow 14538343284

Add all the Free Cash Flow together and divide 6 will get Campbell Soup Co's FCF(6 year avg) = $819.50.

Campbell Soup Co's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value=(Growth Multiple*Free Cash Flow(6 year avg)+Total Equity(Apr17)*0.8)/Shares Outstanding
=(9.52035159596*819.5+1481*0.8)/306.000
=29.37

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

The growth multiple is capped between 8.35 and 17.74.

Total equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy medium after taking the above ideas into consideration. Learn more here.

Campbell Soup Co's Price to Intrinsic Value: Projected FCF Ratio for today is calculated as

Price to Intrinsic Value: Projected FCF=Share Price/Intrinsic Value: Projected FCF
=53.79/29.3683925912
=1.83

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Intrinsic Value: DCF (Earnings Based), Intrinsic Value: DCF (FCF Based), Free Cash Flow


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Campbell Soup Co Annual Data

Jul07Jul08Jul09Jul10Jul11Jul12Jul13Jul14Jul15Jul16
Projected FCF 17.7517.9918.4721.3723.1222.5525.0026.5126.3228.55

Campbell Soup Co Quarterly Data

Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16Jan17Apr17
Projected FCF 28.8828.4526.3227.5228.2428.7128.5529.9729.3029.37
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