Intrinsic value of General Mills - GIS

Previous Close

$51.23

  Intrinsic Value

$38.80

stock screener

  Rating & Target

sell

-24%

  Value-price divergence*

+34%

Previous close

$51.23

 
Intrinsic value

$38.80

 
Up/down potential

-24%

 
Rating

sell

 
Value-price divergence*

+34%

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

We calculate the intrinsic value of GIS 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 2017), $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 29.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   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
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -5.69
  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
  15,620
  15,932
  16,299
  16,718
  17,188
  17,709
  18,281
  18,903
  19,577
  20,303
  21,083
  21,916
  22,806
  23,753
  24,759
  25,827
  26,959
  28,157
  29,424
  30,763
  32,176
  33,668
  35,241
  36,899
  38,645
  40,485
  42,422
  44,461
  46,607
  48,864
  51,238
Variable operating expenses, $m
 
  13,318
  13,604
  13,931
  14,299
  14,706
  15,152
  15,638
  16,165
  16,732
  17,340
  17,117
  17,811
  18,551
  19,337
  20,171
  21,055
  21,991
  22,980
  24,026
  25,130
  26,295
  27,523
  28,818
  30,182
  31,619
  33,132
  34,724
  36,400
  38,163
  40,017
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
  13,053
  13,318
  13,604
  13,931
  14,299
  14,706
  15,152
  15,638
  16,165
  16,732
  17,340
  17,117
  17,811
  18,551
  19,337
  20,171
  21,055
  21,991
  22,980
  24,026
  25,130
  26,295
  27,523
  28,818
  30,182
  31,619
  33,132
  34,724
  36,400
  38,163
  40,017
Operating income, $m
  2,566
  2,614
  2,695
  2,786
  2,889
  3,004
  3,129
  3,265
  3,413
  3,572
  3,742
  4,800
  4,994
  5,202
  5,422
  5,656
  5,904
  6,166
  6,444
  6,737
  7,047
  7,373
  7,718
  8,081
  8,463
  8,866
  9,290
  9,737
  10,207
  10,701
  11,221
EBITDA, $m
  3,170
  3,789
  3,876
  3,975
  4,087
  4,211
  4,347
  4,495
  4,655
  4,828
  5,013
  5,211
  5,423
  5,648
  5,887
  6,141
  6,411
  6,695
  6,997
  7,315
  7,651
  8,006
  8,380
  8,774
  9,189
  9,627
  10,088
  10,572
  11,083
  11,619
  12,184
Interest expense (income), $m
  286
  305
  317
  330
  346
  364
  383
  405
  428
  453
  480
  509
  541
  574
  610
  647
  687
  730
  774
  822
  872
  925
  981
  1,040
  1,102
  1,167
  1,236
  1,309
  1,385
  1,465
  1,550
Earnings before tax, $m
  2,271
  2,309
  2,378
  2,456
  2,543
  2,640
  2,746
  2,861
  2,985
  3,119
  3,262
  4,290
  4,454
  4,628
  4,813
  5,009
  5,217
  5,437
  5,669
  5,915
  6,175
  6,448
  6,737
  7,041
  7,361
  7,699
  8,054
  8,428
  8,822
  9,236
  9,671
Tax expense, $m
  655
  624
  642
  663
  687
  713
  741
  772
  806
  842
  881
  1,158
  1,202
  1,250
  1,299
  1,352
  1,409
  1,468
  1,531
  1,597
  1,667
  1,741
  1,819
  1,901
  1,988
  2,079
  2,175
  2,276
  2,382
  2,494
  2,611
Net income, $m
  1,658
  1,686
  1,736
  1,793
  1,857
  1,927
  2,004
  2,088
  2,179
  2,277
  2,381
  3,132
  3,251
  3,378
  3,513
  3,657
  3,808
  3,969
  4,139
  4,318
  4,507
  4,707
  4,918
  5,140
  5,374
  5,620
  5,880
  6,153
  6,440
  6,742
  7,060

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  766
  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
  21,813
  21,472
  21,966
  22,531
  23,164
  23,867
  24,637
  25,476
  26,385
  27,363
  28,413
  29,537
  30,735
  32,012
  33,368
  34,808
  36,333
  37,948
  39,655
  41,459
  43,364
  45,374
  47,494
  49,729
  52,083
  54,562
  57,173
  59,921
  62,812
  65,854
  69,054
Adjusted assets (=assets-cash), $m
  21,047
  21,472
  21,966
  22,531
  23,164
  23,867
  24,637
  25,476
  26,385
  27,363
  28,413
  29,537
  30,735
  32,012
  33,368
  34,808
  36,333
  37,948
  39,655
  41,459
  43,364
  45,374
  47,494
  49,729
  52,083
  54,562
  57,173
  59,921
  62,812
  65,854
  69,054
Revenue / Adjusted assets
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
  0.742
Average production assets, $m
  8,251
  8,412
  8,606
  8,827
  9,075
  9,350
  9,652
  9,981
  10,337
  10,720
  11,132
  11,572
  12,041
  12,541
  13,073
  13,637
  14,234
  14,867
  15,536
  16,243
  16,989
  17,777
  18,607
  19,482
  20,405
  21,376
  22,399
  23,476
  24,608
  25,800
  27,054
Working capital, $m
  -1,270
  -207
  -212
  -217
  -223
  -230
  -238
  -246
  -255
  -264
  -274
  -285
  -296
  -309
  -322
  -336
  -350
  -366
  -383
  -400
  -418
  -438
  -458
  -480
  -502
  -526
  -551
  -578
  -606
  -635
  -666
Total debt, $m
  9,482
  9,046
  9,438
  9,886
  10,390
  10,947
  11,559
  12,225
  12,946
  13,723
  14,557
  15,449
  16,401
  17,414
  18,491
  19,634
  20,845
  22,127
  23,483
  24,916
  26,428
  28,024
  29,707
  31,481
  33,351
  35,319
  37,392
  39,574
  41,870
  44,285
  46,826
Total liabilities, $m
  17,485
  17,049
  17,441
  17,889
  18,393
  18,950
  19,562
  20,228
  20,949
  21,726
  22,560
  23,452
  24,404
  25,417
  26,494
  27,637
  28,848
  30,130
  31,486
  32,919
  34,431
  36,027
  37,710
  39,484
  41,354
  43,322
  45,395
  47,577
  49,873
  52,288
  54,829
Total equity, $m
  4,328
  4,423
  4,525
  4,641
  4,772
  4,917
  5,075
  5,248
  5,435
  5,637
  5,853
  6,085
  6,331
  6,594
  6,874
  7,170
  7,485
  7,817
  8,169
  8,541
  8,933
  9,347
  9,784
  10,244
  10,729
  11,240
  11,778
  12,344
  12,939
  13,566
  14,225
Total liabilities and equity, $m
  21,813
  21,472
  21,966
  22,530
  23,165
  23,867
  24,637
  25,476
  26,384
  27,363
  28,413
  29,537
  30,735
  32,011
  33,368
  34,807
  36,333
  37,947
  39,655
  41,460
  43,364
  45,374
  47,494
  49,728
  52,083
  54,562
  57,173
  59,921
  62,812
  65,854
  69,054
Debt-to-equity ratio
  2.191
  2.050
  2.090
  2.130
  2.180
  2.230
  2.280
  2.330
  2.380
  2.430
  2.490
  2.540
  2.590
  2.640
  2.690
  2.740
  2.790
  2.830
  2.870
  2.920
  2.960
  3.000
  3.040
  3.070
  3.110
  3.140
  3.170
  3.210
  3.240
  3.260
  3.290
Adjusted equity ratio
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206
  0.206

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,658
  1,686
  1,736
  1,793
  1,857
  1,927
  2,004
  2,088
  2,179
  2,277
  2,381
  3,132
  3,251
  3,378
  3,513
  3,657
  3,808
  3,969
  4,139
  4,318
  4,507
  4,707
  4,918
  5,140
  5,374
  5,620
  5,880
  6,153
  6,440
  6,742
  7,060
Depreciation, amort., depletion, $m
  604
  1,174
  1,181
  1,189
  1,198
  1,207
  1,218
  1,230
  1,243
  1,256
  1,271
  412
  429
  446
  465
  485
  507
  529
  553
  578
  605
  633
  662
  693
  726
  761
  797
  835
  876
  918
  963
Funds from operations, $m
  1,995
  2,860
  2,917
  2,982
  3,054
  3,135
  3,223
  3,318
  3,421
  3,533
  3,652
  3,544
  3,680
  3,825
  3,979
  4,142
  4,315
  4,498
  4,692
  4,896
  5,112
  5,340
  5,580
  5,833
  6,100
  6,381
  6,677
  6,988
  7,316
  7,660
  8,023
Change in working capital, $m
  -318
  -4
  -5
  -5
  -6
  -7
  -7
  -8
  -9
  -9
  -10
  -11
  -12
  -12
  -13
  -14
  -15
  -16
  -16
  -17
  -18
  -19
  -20
  -22
  -23
  -24
  -25
  -27
  -28
  -29
  -31
Cash from operations, $m
  2,313
  2,864
  2,922
  2,987
  3,060
  3,141
  3,230
  3,326
  3,430
  3,542
  3,662
  3,554
  3,691
  3,837
  3,992
  4,156
  4,330
  4,514
  4,708
  4,913
  5,130
  5,359
  5,600
  5,855
  6,123
  6,405
  6,702
  7,015
  7,343
  7,690
  8,054
Maintenance CAPEX, $m
  0
  -294
  -299
  -306
  -314
  -323
  -333
  -343
  -355
  -368
  -382
  -396
  -412
  -429
  -446
  -465
  -485
  -507
  -529
  -553
  -578
  -605
  -633
  -662
  -693
  -726
  -761
  -797
  -835
  -876
  -918
New CAPEX, $m
  -684
  -162
  -193
  -221
  -248
  -275
  -302
  -329
  -356
  -383
  -411
  -440
  -470
  -500
  -531
  -564
  -598
  -633
  -669
  -707
  -746
  -787
  -830
  -875
  -922
  -971
  -1,023
  -1,077
  -1,133
  -1,192
  -1,254
Cash from investing activities, $m
  -647
  -456
  -492
  -527
  -562
  -598
  -635
  -672
  -711
  -751
  -793
  -836
  -882
  -929
  -977
  -1,029
  -1,083
  -1,140
  -1,198
  -1,260
  -1,324
  -1,392
  -1,463
  -1,537
  -1,615
  -1,697
  -1,784
  -1,874
  -1,968
  -2,068
  -2,172
Free cash flow, $m
  1,666
  2,409
  2,429
  2,460
  2,498
  2,543
  2,595
  2,654
  2,719
  2,791
  2,869
  2,718
  2,810
  2,908
  3,014
  3,127
  3,247
  3,374
  3,510
  3,654
  3,806
  3,967
  4,137
  4,317
  4,507
  4,707
  4,918
  5,141
  5,375
  5,622
  5,882
Issuance/(repayment) of debt, $m
  1,035
  330
  392
  448
  503
  558
  612
  666
  721
  777
  834
  892
  952
  1,013
  1,077
  1,143
  1,211
  1,282
  1,356
  1,433
  1,513
  1,596
  1,683
  1,774
  1,869
  1,969
  2,073
  2,182
  2,296
  2,415
  2,541
Issuance/(repurchase) of shares, $m
  -1,539
  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  
  -511
  330
  392
  448
  503
  558
  612
  666
  721
  777
  834
  892
  952
  1,013
  1,077
  1,143
  1,211
  1,282
  1,356
  1,433
  1,513
  1,596
  1,683
  1,774
  1,869
  1,969
  2,073
  2,182
  2,296
  2,415
  2,541
Total cash flow (excl. dividends), $m
  1,137
  2,739
  2,821
  2,908
  3,001
  3,101
  3,207
  3,320
  3,440
  3,568
  3,703
  3,610
  3,762
  3,922
  4,091
  4,269
  4,458
  4,656
  4,866
  5,086
  5,319
  5,563
  5,821
  6,091
  6,376
  6,676
  6,991
  7,323
  7,671
  8,037
  8,422
Retained Cash Flow (-), $m
  602
  -95
  -102
  -116
  -131
  -145
  -159
  -173
  -187
  -202
  -216
  -231
  -247
  -263
  -279
  -297
  -314
  -333
  -352
  -372
  -392
  -414
  -437
  -460
  -485
  -511
  -538
  -566
  -596
  -627
  -659
Prev. year cash balance distribution, $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 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
 
  2,643
  2,719
  2,792
  2,871
  2,956
  3,048
  3,147
  3,253
  3,366
  3,487
  3,379
  3,515
  3,659
  3,811
  3,973
  4,144
  4,324
  4,514
  4,715
  4,926
  5,149
  5,384
  5,631
  5,891
  6,165
  6,453
  6,757
  7,075
  7,411
  7,763
Discount rate, %
 
  8.20
  8.61
  9.04
  9.49
  9.97
  10.47
  10.99
  11.54
  12.12
  12.72
  13.36
  14.02
  14.73
  15.46
  16.24
  17.05
  17.90
  18.79
  19.73
  20.72
  21.76
  22.84
  23.99
  25.19
  26.45
  27.77
  29.16
  30.61
  32.15
  33.75
PV of cash for distribution, $m
 
  2,443
  2,305
  2,153
  1,997
  1,838
  1,678
  1,517
  1,358
  1,203
  1,053
  851
  728
  613
  509
  416
  334
  263
  203
  154
  114
  82
  58
  40
  27
  17
  11
  7
  4
  2
  1
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

General Mills, Inc. is a manufacturer and marketer of branded consumer foods sold through retail stores. The Company is a supplier of branded and unbranded food products to the North American foodservice and commercial baking industries. The Company has three segments: U.S. Retail, International, and Convenience Stores and Foodservice. Its products are marketed under various brands, which include Annie's and Betty Crocker. The Company's U.S. Retail segment reflects business with a range of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, and e-commerce grocery providers operating throughout the United States. The International segment consists of retail and foodservice businesses outside of the United States. The Convenience Stores and Foodservice segment's product categories include ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes.

FINANCIAL RATIOS  of  General Mills (GIS)

Valuation Ratios
P/E Ratio 17.8
Price to Sales 1.9
Price to Book 6.8
Price to Tangible Book
Price to Cash Flow 12.8
Price to Free Cash Flow 18.1
Growth Rates
Sales Growth Rate -5.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -6.2%
Cap. Spend. - 3 Yr. Gr. Rate 0.6%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 176.6%
Total Debt to Equity 219.1%
Interest Coverage 9
Management Effectiveness
Return On Assets 8.6%
Ret/ On Assets - 3 Yr. Avg. 7.9%
Return On Total Capital 12.2%
Ret/ On T. Cap. - 3 Yr. Avg. 10.9%
Return On Equity 35.8%
Return On Equity - 3 Yr. Avg. 30.4%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 35.8%
Gross Margin - 3 Yr. Avg. 35.3%
EBITDA Margin 20.2%
EBITDA Margin - 3 Yr. Avg. 18.4%
Operating Margin 16.4%
Oper. Margin - 3 Yr. Avg. 14.9%
Pre-Tax Margin 14.5%
Pre-Tax Margin - 3 Yr. Avg. 13%
Net Profit Margin 10.6%
Net Profit Margin - 3 Yr. Avg. 9.3%
Effective Tax Rate 28.8%
Eff/ Tax Rate - 3 Yr. Avg. 31.2%
Payout Ratio 68.5%

GIS stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the GIS stock intrinsic value calculation we used $15620 million for the last fiscal year's total revenue generated by General Mills. The default revenue input number comes from 2017 income statement of General Mills. 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 GIS 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 8.2%, whose default value for GIS is calculated based on our internal credit rating of General Mills, 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 General Mills.
    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 GIS stock the variable cost ratio is equal to 83.7%.

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 GIS 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 3.5% for General Mills.

Corporate tax rate of 27% is the nominal tax rate for General Mills. 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 GIS 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 GIS are equal to 52.8%.

Life of production assets of 28.1 years is the average useful life of capital assets used in General Mills 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 GIS is equal to -1.3%. 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 - $4328 million for General Mills - 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 566.521 million for General Mills 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 General Mills at the current share price and the inputted number of shares is $29.0 billion.

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COMPANY NEWS

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▶ Company News For Sep 21, 2017   [10:26AM  Zacks]
▶ General Mills misses Street 1Q forecasts   [Sep-20-17 10:10PM  Associated Press]
▶ [$$] Falling Yogurt Sales Drag Down General Mills' Earnings   [05:34PM  The Wall Street Journal]
▶ Yogurt and cereal are still crimping General Mills   [04:05PM  American City Business Journals]
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▶ Don't get complacent, get diversified, says Cramer   [Sep-15-17 06:44PM  CNBC Videos]
▶ Q3 Earnings Season Gets Underway   [04:58PM  Zacks]
▶ What Analysts Recommend for GIS Stock   [09:11AM  Market Realist]
▶ Why General Mills Margins Could Expand   [07:39AM  Market Realist]
▶ Why Analysts Estimate General Mills Sales Could Fall in 1Q18   [Sep-14-17 05:05PM  Market Realist]
▶ Why Upside to GIS Stock Is Limited   [01:51PM  Market Realist]
▶ 3 Popular Stocks You Must Dump This Month   [Sep-12-17 08:19AM  Forbes]
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▶ [$$] Restaurant Chains and Food Companies Step Up Harvey Assistance   [Aug-30-17 03:29PM  The Wall Street Journal]
▶ General Mills CEO Breaks Down Companys Turnaround Plan   [Aug-29-17 11:50AM  Fortune Videos]
Financial statements of GIS
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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