Intrinsic value of Conagra Brands - CAG

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$39.03

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$39.03

 
Intrinsic value

$32.00

 
Up/down potential

-18%

 
Rating

hold

 
Value-price divergence* premium content

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of CAG stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 16.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -2.46
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  11,643
  11,876
  12,149
  12,461
  12,812
  13,200
  13,626
  14,090
  14,593
  15,134
  15,715
  16,336
  16,999
  17,705
  18,455
  19,251
  20,095
  20,988
  21,932
  22,930
  23,984
  25,096
  26,268
  27,504
  28,806
  30,177
  31,621
  33,141
  34,740
  36,423
  38,192
Variable operating expenses, $m
 
  10,145
  10,368
  10,623
  10,910
  11,227
  11,576
  11,955
  12,365
  12,808
  13,282
  13,351
  13,892
  14,469
  15,082
  15,733
  16,423
  17,152
  17,924
  18,740
  19,601
  20,509
  21,467
  22,477
  23,541
  24,662
  25,842
  27,084
  28,391
  29,766
  31,212
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  10,375
  10,145
  10,368
  10,623
  10,910
  11,227
  11,576
  11,955
  12,365
  12,808
  13,282
  13,351
  13,892
  14,469
  15,082
  15,733
  16,423
  17,152
  17,924
  18,740
  19,601
  20,509
  21,467
  22,477
  23,541
  24,662
  25,842
  27,084
  28,391
  29,766
  31,212
Operating income, $m
  1,268
  1,731
  1,781
  1,838
  1,902
  1,973
  2,051
  2,136
  2,227
  2,326
  2,432
  2,986
  3,107
  3,236
  3,373
  3,518
  3,673
  3,836
  4,008
  4,191
  4,383
  4,586
  4,801
  5,027
  5,264
  5,515
  5,779
  6,057
  6,349
  6,656
  6,980
EBITDA, $m
  1,642
  2,336
  2,390
  2,451
  2,520
  2,596
  2,680
  2,771
  2,870
  2,977
  3,091
  3,213
  3,344
  3,482
  3,630
  3,787
  3,952
  4,128
  4,314
  4,510
  4,717
  4,936
  5,167
  5,410
  5,666
  5,936
  6,220
  6,518
  6,833
  7,164
  7,512
Interest expense (income), $m
  324
  239
  248
  259
  271
  284
  299
  315
  333
  352
  373
  395
  419
  444
  471
  500
  531
  563
  597
  633
  672
  712
  755
  799
  847
  897
  949
  1,005
  1,063
  1,124
  1,189
Earnings before tax, $m
  955
  1,492
  1,533
  1,579
  1,631
  1,689
  1,752
  1,820
  1,894
  1,974
  2,059
  2,590
  2,688
  2,791
  2,901
  3,018
  3,142
  3,273
  3,411
  3,557
  3,712
  3,874
  4,046
  4,227
  4,418
  4,618
  4,830
  5,052
  5,286
  5,532
  5,791
Tax expense, $m
  225
  403
  414
  426
  440
  456
  473
  491
  511
  533
  556
  699
  726
  754
  783
  815
  848
  884
  921
  960
  1,002
  1,046
  1,092
  1,141
  1,193
  1,247
  1,304
  1,364
  1,427
  1,494
  1,564
Net income, $m
  -306
  1,089
  1,119
  1,153
  1,191
  1,233
  1,279
  1,329
  1,383
  1,441
  1,503
  1,891
  1,962
  2,038
  2,118
  2,203
  2,294
  2,389
  2,490
  2,597
  2,709
  2,828
  2,954
  3,086
  3,225
  3,371
  3,526
  3,688
  3,859
  4,039
  4,228

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  824
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  13,391
  12,825
  13,120
  13,457
  13,836
  14,255
  14,715
  15,216
  15,759
  16,343
  16,971
  17,642
  18,358
  19,120
  19,930
  20,790
  21,701
  22,665
  23,685
  24,763
  25,901
  27,101
  28,367
  29,702
  31,108
  32,589
  34,148
  35,789
  37,516
  39,333
  41,244
Adjusted assets (=assets-cash), $m
  12,567
  12,825
  13,120
  13,457
  13,836
  14,255
  14,715
  15,216
  15,759
  16,343
  16,971
  17,642
  18,358
  19,120
  19,930
  20,790
  21,701
  22,665
  23,685
  24,763
  25,901
  27,101
  28,367
  29,702
  31,108
  32,589
  34,148
  35,789
  37,516
  39,333
  41,244
Revenue / Adjusted assets
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
  0.926
Average production assets, $m
  3,428
  3,492
  3,572
  3,664
  3,767
  3,881
  4,006
  4,143
  4,290
  4,449
  4,620
  4,803
  4,998
  5,205
  5,426
  5,660
  5,908
  6,170
  6,448
  6,742
  7,051
  7,378
  7,723
  8,086
  8,469
  8,872
  9,297
  9,743
  10,214
  10,708
  11,229
Working capital, $m
  1,045
  808
  826
  847
  871
  898
  927
  958
  992
  1,029
  1,069
  1,111
  1,156
  1,204
  1,255
  1,309
  1,366
  1,427
  1,491
  1,559
  1,631
  1,707
  1,786
  1,870
  1,959
  2,052
  2,150
  2,254
  2,362
  2,477
  2,597
Total debt, $m
  5,455
  5,063
  5,277
  5,521
  5,795
  6,099
  6,432
  6,795
  7,187
  7,611
  8,065
  8,551
  9,069
  9,621
  10,207
  10,830
  11,489
  12,188
  12,926
  13,706
  14,530
  15,399
  16,316
  17,282
  18,300
  19,372
  20,501
  21,689
  22,940
  24,255
  25,639
Total liabilities, $m
  9,677
  9,285
  9,499
  9,743
  10,017
  10,321
  10,654
  11,017
  11,409
  11,833
  12,287
  12,773
  13,291
  13,843
  14,429
  15,052
  15,711
  16,410
  17,148
  17,928
  18,752
  19,621
  20,538
  21,504
  22,522
  23,594
  24,723
  25,911
  27,162
  28,477
  29,861
Total equity, $m
  3,714
  3,540
  3,621
  3,714
  3,819
  3,934
  4,061
  4,200
  4,349
  4,511
  4,684
  4,869
  5,067
  5,277
  5,501
  5,738
  5,989
  6,256
  6,537
  6,835
  7,149
  7,480
  7,829
  8,198
  8,586
  8,995
  9,425
  9,878
  10,355
  10,856
  11,383
Total liabilities and equity, $m
  13,391
  12,825
  13,120
  13,457
  13,836
  14,255
  14,715
  15,217
  15,758
  16,344
  16,971
  17,642
  18,358
  19,120
  19,930
  20,790
  21,700
  22,666
  23,685
  24,763
  25,901
  27,101
  28,367
  29,702
  31,108
  32,589
  34,148
  35,789
  37,517
  39,333
  41,244
Debt-to-equity ratio
  1.469
  1.430
  1.460
  1.490
  1.520
  1.550
  1.580
  1.620
  1.650
  1.690
  1.720
  1.760
  1.790
  1.820
  1.860
  1.890
  1.920
  1.950
  1.980
  2.010
  2.030
  2.060
  2.080
  2.110
  2.130
  2.150
  2.180
  2.200
  2.220
  2.230
  2.250
Adjusted equity ratio
  0.231
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276
  0.276

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -306
  1,089
  1,119
  1,153
  1,191
  1,233
  1,279
  1,329
  1,383
  1,441
  1,503
  1,891
  1,962
  2,038
  2,118
  2,203
  2,294
  2,389
  2,490
  2,597
  2,709
  2,828
  2,954
  3,086
  3,225
  3,371
  3,526
  3,688
  3,859
  4,039
  4,228
Depreciation, amort., depletion, $m
  374
  605
  609
  613
  618
  624
  629
  636
  643
  650
  659
  228
  237
  247
  257
  268
  280
  292
  306
  320
  334
  350
  366
  383
  401
  420
  441
  462
  484
  508
  532
Funds from operations, $m
  1,137
  1,694
  1,728
  1,766
  1,809
  1,856
  1,908
  1,965
  2,026
  2,092
  2,162
  2,119
  2,199
  2,284
  2,375
  2,471
  2,574
  2,682
  2,796
  2,916
  3,044
  3,178
  3,320
  3,469
  3,626
  3,792
  3,966
  4,150
  4,343
  4,546
  4,760
Change in working capital, $m
  -70
  16
  19
  21
  24
  26
  29
  32
  34
  37
  39
  42
  45
  48
  51
  54
  57
  61
  64
  68
  72
  76
  80
  84
  89
  93
  98
  103
  109
  114
  120
Cash from operations, $m
  1,207
  1,189
  1,709
  1,745
  1,785
  1,830
  1,879
  1,933
  1,992
  2,055
  2,122
  2,076
  2,154
  2,236
  2,324
  2,417
  2,516
  2,621
  2,731
  2,848
  2,972
  3,102
  3,240
  3,385
  3,538
  3,699
  3,868
  4,047
  4,234
  4,432
  4,640
Maintenance CAPEX, $m
  0
  -162
  -165
  -169
  -174
  -179
  -184
  -190
  -196
  -203
  -211
  -219
  -228
  -237
  -247
  -257
  -268
  -280
  -292
  -306
  -320
  -334
  -350
  -366
  -383
  -401
  -420
  -441
  -462
  -484
  -508
New CAPEX, $m
  -440
  -64
  -80
  -92
  -103
  -114
  -125
  -136
  -148
  -159
  -171
  -183
  -195
  -208
  -221
  -234
  -248
  -263
  -278
  -293
  -310
  -327
  -345
  -363
  -383
  -403
  -424
  -447
  -470
  -495
  -520
Cash from investing activities, $m
  2,127
  -226
  -245
  -261
  -277
  -293
  -309
  -326
  -344
  -362
  -382
  -402
  -423
  -445
  -468
  -491
  -516
  -543
  -570
  -599
  -630
  -661
  -695
  -729
  -766
  -804
  -844
  -888
  -932
  -979
  -1,028
Free cash flow, $m
  3,334
  962
  1,463
  1,484
  1,508
  1,537
  1,570
  1,607
  1,648
  1,692
  1,741
  1,675
  1,731
  1,792
  1,857
  1,926
  2,000
  2,078
  2,161
  2,250
  2,343
  2,441
  2,546
  2,656
  2,772
  2,894
  3,023
  3,159
  3,302
  3,453
  3,612
Issuance/(repayment) of debt, $m
  -2,464
  181
  214
  244
  274
  304
  333
  363
  393
  423
  454
  486
  518
  552
  587
  622
  660
  698
  738
  780
  824
  869
  917
  966
  1,018
  1,072
  1,129
  1,188
  1,250
  1,315
  1,384
Issuance/(repurchase) of shares, $m
  269
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -2,248
  181
  214
  244
  274
  304
  333
  363
  393
  423
  454
  486
  518
  552
  587
  622
  660
  698
  738
  780
  824
  869
  917
  966
  1,018
  1,072
  1,129
  1,188
  1,250
  1,315
  1,384
Total cash flow (excl. dividends), $m
  1,084
  1,143
  1,677
  1,728
  1,783
  1,841
  1,903
  1,970
  2,040
  2,115
  2,195
  2,161
  2,250
  2,344
  2,443
  2,549
  2,660
  2,776
  2,900
  3,030
  3,167
  3,311
  3,462
  3,622
  3,790
  3,966
  4,152
  4,347
  4,553
  4,769
  4,995
Retained Cash Flow (-), $m
  812
  -77
  -81
  -93
  -104
  -116
  -127
  -138
  -150
  -161
  -173
  -185
  -198
  -210
  -224
  -237
  -251
  -266
  -281
  -297
  -314
  -331
  -349
  -368
  -388
  -409
  -430
  -453
  -477
  -501
  -527
Prev. year cash balance distribution, $m
 
  251
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,318
  1,595
  1,635
  1,678
  1,725
  1,776
  1,831
  1,891
  1,954
  2,022
  1,975
  2,052
  2,133
  2,220
  2,311
  2,408
  2,510
  2,618
  2,732
  2,852
  2,979
  3,113
  3,253
  3,402
  3,558
  3,722
  3,894
  4,076
  4,267
  4,468
Discount rate, %
 
  7.40
  7.77
  8.16
  8.57
  8.99
  9.44
  9.92
  10.41
  10.93
  11.48
  12.05
  12.66
  13.29
  13.95
  14.65
  15.38
  16.15
  16.96
  17.81
  18.70
  19.63
  20.62
  21.65
  22.73
  23.87
  25.06
  26.31
  27.63
  29.01
  30.46
PV of cash for distribution, $m
 
  1,227
  1,374
  1,292
  1,208
  1,122
  1,034
  945
  856
  768
  682
  565
  491
  421
  357
  297
  244
  197
  156
  121
  93
  69
  50
  36
  25
  17
  11
  7
  4
  3
  2
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Conagra Brands, Inc., together with its subsidiaries, operates as a food company in North America. It operates through five segments: Grocery & Snacks, Refrigerated & Frozen, International, Foodservice, and Commercial. The Grocery & Snacks segment primarily provides branded, shelf-stable food products in various retail channels in the United States. The Refrigerated & Frozen segment offers branded, temperature controlled food products in various retail channels in the United States. The International segment primarily provides branded food products, in various temperature states, in retail and foodservice channels outside of the United States. The Foodservice segment offers branded and customized food products, such as meals, entrees, prepared potatoes, sauces, and various custom-manufactured culinary products packaged for sale to restaurants and other foodservice establishments in the United States. The Commercial segment offers commercially branded and private label food and ingredients primarily to commercial, restaurant, foodservice, food manufacturing, and industrial customers. The company markets its products primarily under the Healthy Choice, Hunt’s, Slim Jim, Reddi-wip, Alexia, Blake’s, Frontera, Bertolli, P.F. Chang’s, and Marie Callender’s brands. The company was formerly known as ConAgra Foods, Inc. and changed its name to Conagra Brands, Inc. in November 2016. Conagra Brands, Inc. was founded in 1919 and is headquartered in Chicago, Illinois.

FINANCIAL RATIOS  of  Conagra Brands (CAG)

Valuation Ratios
P/E Ratio -55.9
Price to Sales 1.5
Price to Book 4.6
Price to Tangible Book
Price to Cash Flow 14.2
Price to Free Cash Flow 22.3
Growth Rates
Sales Growth Rate -2.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 25.4%
Cap. Spend. - 3 Yr. Gr. Rate 0.6%
Financial Strength
Quick Ratio 1
Current Ratio 0.4
LT Debt to Equity 131.4%
Total Debt to Equity 146.9%
Interest Coverage 4
Management Effectiveness
Return On Assets -0.4%
Ret/ On Assets - 3 Yr. Avg. 2.2%
Return On Total Capital -2.8%
Ret/ On T. Cap. - 3 Yr. Avg. 0.9%
Return On Equity -7.4%
Return On Equity - 3 Yr. Avg. 2.5%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 27.1%
Gross Margin - 3 Yr. Avg. 25.5%
EBITDA Margin 14.2%
EBITDA Margin - 3 Yr. Avg. 15.8%
Operating Margin 10.9%
Oper. Margin - 3 Yr. Avg. 12.9%
Pre-Tax Margin 8.2%
Pre-Tax Margin - 3 Yr. Avg. 9.7%
Net Profit Margin -2.6%
Net Profit Margin - 3 Yr. Avg. 1.3%
Effective Tax Rate 23.6%
Eff/ Tax Rate - 3 Yr. Avg. 22%
Payout Ratio -141.5%

CAG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CAG stock intrinsic value calculation we used $11643 million for the last fiscal year's total revenue generated by Conagra Brands. The default revenue input number comes from 2016 income statement of Conagra Brands. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CAG stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 7.4%, whose default value for CAG is calculated based on our internal credit rating of Conagra Brands, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Conagra Brands.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CAG stock the variable cost ratio is equal to 85.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for CAG stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.9% for Conagra Brands.

Corporate tax rate of 27% is the nominal tax rate for Conagra Brands. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CAG stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CAG are equal to 29.4%.

Life of production assets of 21.1 years is the average useful life of capital assets used in Conagra Brands operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CAG is equal to 6.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3714 million for Conagra Brands - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 427.357 million for Conagra Brands is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Conagra Brands at the current share price and the inputted number of shares is $16.7 billion.


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Stock chart of CAG Financial statements of CAG Annual reports of CAG
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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