Intrinsic value of Mondelez International Cl A - MDLZ

Previous Close

$41.02

  Intrinsic Value

$43.19

stock screener

  Rating & Target

hold

+5%

Previous close

$41.02

 
Intrinsic value

$43.19

 
Up/down potential

+5%

 
Rating

hold

We calculate the intrinsic value of MDLZ 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 61.8

 

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, %
  -12.53
  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
  25,923
  26,441
  27,050
  27,745
  28,525
  29,390
  30,339
  31,372
  32,491
  33,696
  34,989
  36,372
  37,848
  39,420
  41,090
  42,863
  44,741
  46,730
  48,832
  51,054
  53,400
  55,875
  58,486
  61,237
  64,136
  67,189
  70,404
  73,788
  77,349
  81,095
  85,035
Variable operating expenses, $m
 
  18,468
  18,847
  19,279
  19,764
  20,302
  20,892
  21,534
  22,230
  22,979
  23,783
  22,616
  23,533
  24,511
  25,549
  26,652
  27,819
  29,056
  30,363
  31,745
  33,203
  34,742
  36,365
  38,076
  39,879
  41,777
  43,776
  45,880
  48,094
  50,423
  52,873
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
  23,781
  18,468
  18,847
  19,279
  19,764
  20,302
  20,892
  21,534
  22,230
  22,979
  23,783
  22,616
  23,533
  24,511
  25,549
  26,652
  27,819
  29,056
  30,363
  31,745
  33,203
  34,742
  36,365
  38,076
  39,879
  41,777
  43,776
  45,880
  48,094
  50,423
  52,873
Operating income, $m
  2,142
  7,973
  8,203
  8,466
  8,761
  9,088
  9,447
  9,838
  10,261
  10,717
  11,206
  13,757
  14,315
  14,909
  15,541
  16,211
  16,922
  17,674
  18,469
  19,310
  20,197
  21,133
  22,120
  23,161
  24,257
  25,412
  26,628
  27,908
  29,254
  30,671
  32,162
EBITDA, $m
  2,965
  10,909
  11,160
  11,447
  11,769
  12,126
  12,517
  12,944
  13,405
  13,902
  14,436
  15,007
  15,616
  16,264
  16,953
  17,685
  18,460
  19,280
  20,147
  21,064
  22,032
  23,053
  24,130
  25,265
  26,461
  27,721
  29,048
  30,444
  31,913
  33,458
  35,084
Interest expense (income), $m
  630
  596
  622
  654
  690
  730
  775
  824
  878
  936
  998
  1,065
  1,137
  1,213
  1,295
  1,381
  1,473
  1,571
  1,674
  1,783
  1,898
  2,019
  2,148
  2,283
  2,425
  2,576
  2,734
  2,900
  3,076
  3,260
  3,454
Earnings before tax, $m
  1,454
  7,377
  7,581
  7,812
  8,071
  8,358
  8,672
  9,014
  9,383
  9,781
  10,208
  12,691
  13,178
  13,696
  14,246
  14,830
  15,449
  16,103
  16,796
  17,527
  18,299
  19,114
  19,973
  20,878
  21,832
  22,836
  23,894
  25,007
  26,179
  27,411
  28,707
Tax expense, $m
  129
  1,992
  2,047
  2,109
  2,179
  2,257
  2,341
  2,434
  2,533
  2,641
  2,756
  3,427
  3,558
  3,698
  3,846
  4,004
  4,171
  4,348
  4,535
  4,732
  4,941
  5,161
  5,393
  5,637
  5,895
  6,166
  6,451
  6,752
  7,068
  7,401
  7,751
Net income, $m
  1,659
  5,385
  5,534
  5,703
  5,892
  6,101
  6,331
  6,580
  6,850
  7,140
  7,451
  9,265
  9,620
  9,998
  10,400
  10,826
  11,278
  11,755
  12,261
  12,795
  13,358
  13,953
  14,580
  15,241
  15,937
  16,671
  17,443
  18,255
  19,110
  20,010
  20,956

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,909
  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
  61,538
  60,785
  62,183
  63,781
  65,575
  67,563
  69,745
  72,120
  74,691
  77,461
  80,434
  83,614
  87,008
  90,621
  94,461
  98,536
  102,854
  107,425
  112,258
  117,366
  122,759
  128,449
  134,450
  140,775
  147,439
  154,458
  161,849
  169,627
  177,813
  186,424
  195,482
Adjusted assets (=assets-cash), $m
  59,629
  60,785
  62,183
  63,781
  65,575
  67,563
  69,745
  72,120
  74,691
  77,461
  80,434
  83,614
  87,008
  90,621
  94,461
  98,536
  102,854
  107,425
  112,258
  117,366
  122,759
  128,449
  134,450
  140,775
  147,439
  154,458
  161,849
  169,627
  177,813
  186,424
  195,482
Revenue / Adjusted assets
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
Average production assets, $m
  26,730
  27,261
  27,888
  28,605
  29,410
  30,301
  31,279
  32,345
  33,498
  34,740
  36,073
  37,500
  39,022
  40,642
  42,364
  44,192
  46,128
  48,178
  50,346
  52,637
  55,055
  57,607
  60,299
  63,135
  66,124
  69,272
  72,587
  76,075
  79,746
  83,608
  87,671
Working capital, $m
  -5,937
  -3,940
  -4,030
  -4,134
  -4,250
  -4,379
  -4,520
  -4,674
  -4,841
  -5,021
  -5,213
  -5,419
  -5,639
  -5,874
  -6,122
  -6,387
  -6,666
  -6,963
  -7,276
  -7,607
  -7,957
  -8,325
  -8,714
  -9,124
  -9,556
  -10,011
  -10,490
  -10,994
  -11,525
  -12,083
  -12,670
Total debt, $m
  17,199
  15,956
  16,764
  17,687
  18,725
  19,874
  21,134
  22,507
  23,993
  25,594
  27,313
  29,151
  31,112
  33,201
  35,420
  37,776
  40,271
  42,913
  45,707
  48,659
  51,776
  55,065
  58,534
  62,190
  66,042
  70,099
  74,371
  78,867
  83,598
  88,575
  93,811
Total liabilities, $m
  36,377
  35,134
  35,942
  36,865
  37,903
  39,052
  40,312
  41,685
  43,171
  44,772
  46,491
  48,329
  50,290
  52,379
  54,598
  56,954
  59,449
  62,091
  64,885
  67,837
  70,954
  74,243
  77,712
  81,368
  85,220
  89,277
  93,549
  98,045
  102,776
  107,753
  112,989
Total equity, $m
  25,161
  25,651
  26,241
  26,916
  27,673
  28,512
  29,432
  30,435
  31,520
  32,689
  33,943
  35,285
  36,717
  38,242
  39,862
  41,582
  43,404
  45,333
  47,373
  49,528
  51,804
  54,205
  56,738
  59,407
  62,219
  65,181
  68,300
  71,583
  75,037
  78,671
  82,493
Total liabilities and equity, $m
  61,538
  60,785
  62,183
  63,781
  65,576
  67,564
  69,744
  72,120
  74,691
  77,461
  80,434
  83,614
  87,007
  90,621
  94,460
  98,536
  102,853
  107,424
  112,258
  117,365
  122,758
  128,448
  134,450
  140,775
  147,439
  154,458
  161,849
  169,628
  177,813
  186,424
  195,482
Debt-to-equity ratio
  0.684
  0.620
  0.640
  0.660
  0.680
  0.700
  0.720
  0.740
  0.760
  0.780
  0.800
  0.830
  0.850
  0.870
  0.890
  0.910
  0.930
  0.950
  0.960
  0.980
  1.000
  1.020
  1.030
  1.050
  1.060
  1.080
  1.090
  1.100
  1.110
  1.130
  1.140
Adjusted equity ratio
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422
  0.422

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,659
  5,385
  5,534
  5,703
  5,892
  6,101
  6,331
  6,580
  6,850
  7,140
  7,451
  9,265
  9,620
  9,998
  10,400
  10,826
  11,278
  11,755
  12,261
  12,795
  13,358
  13,953
  14,580
  15,241
  15,937
  16,671
  17,443
  18,255
  19,110
  20,010
  20,956
Depreciation, amort., depletion, $m
  823
  2,936
  2,957
  2,981
  3,008
  3,038
  3,070
  3,106
  3,144
  3,186
  3,230
  1,250
  1,301
  1,355
  1,412
  1,473
  1,538
  1,606
  1,678
  1,755
  1,835
  1,920
  2,010
  2,105
  2,204
  2,309
  2,420
  2,536
  2,658
  2,787
  2,922
Funds from operations, $m
  2,632
  8,321
  8,491
  8,684
  8,900
  9,139
  9,401
  9,686
  9,994
  10,326
  10,682
  10,515
  10,921
  11,353
  11,812
  12,299
  12,815
  13,361
  13,939
  14,549
  15,193
  15,873
  16,590
  17,345
  18,141
  18,980
  19,862
  20,791
  21,769
  22,797
  23,879
Change in working capital, $m
  -206
  -77
  -91
  -104
  -116
  -129
  -141
  -154
  -167
  -180
  -193
  -206
  -220
  -234
  -249
  -264
  -280
  -296
  -313
  -331
  -350
  -369
  -389
  -410
  -432
  -455
  -479
  -504
  -531
  -558
  -587
Cash from operations, $m
  2,838
  8,399
  8,582
  8,788
  9,016
  9,268
  9,542
  9,840
  10,161
  10,505
  10,874
  10,721
  11,141
  11,587
  12,061
  12,563
  13,095
  13,658
  14,252
  14,880
  15,543
  16,242
  16,979
  17,755
  18,573
  19,435
  20,341
  21,295
  22,299
  23,355
  24,466
Maintenance CAPEX, $m
  0
  -891
  -909
  -930
  -953
  -980
  -1,010
  -1,043
  -1,078
  -1,117
  -1,158
  -1,202
  -1,250
  -1,301
  -1,355
  -1,412
  -1,473
  -1,538
  -1,606
  -1,678
  -1,755
  -1,835
  -1,920
  -2,010
  -2,105
  -2,204
  -2,309
  -2,420
  -2,536
  -2,658
  -2,787
New CAPEX, $m
  -1,224
  -531
  -627
  -717
  -805
  -892
  -978
  -1,065
  -1,153
  -1,242
  -1,333
  -1,426
  -1,522
  -1,620
  -1,722
  -1,827
  -1,937
  -2,050
  -2,168
  -2,291
  -2,419
  -2,552
  -2,691
  -2,837
  -2,989
  -3,148
  -3,314
  -3,489
  -3,671
  -3,862
  -4,062
Cash from investing activities, $m
  -1,029
  -1,422
  -1,536
  -1,647
  -1,758
  -1,872
  -1,988
  -2,108
  -2,231
  -2,359
  -2,491
  -2,628
  -2,772
  -2,921
  -3,077
  -3,239
  -3,410
  -3,588
  -3,774
  -3,969
  -4,174
  -4,387
  -4,611
  -4,847
  -5,094
  -5,352
  -5,623
  -5,909
  -6,207
  -6,520
  -6,849
Free cash flow, $m
  1,809
  6,976
  7,046
  7,141
  7,258
  7,396
  7,554
  7,732
  7,929
  8,146
  8,383
  8,092
  8,369
  8,666
  8,984
  9,324
  9,685
  10,070
  10,478
  10,911
  11,370
  11,855
  12,367
  12,909
  13,480
  14,083
  14,718
  15,387
  16,092
  16,835
  17,616
Issuance/(repayment) of debt, $m
  1,704
  666
  808
  924
  1,037
  1,149
  1,261
  1,373
  1,486
  1,601
  1,718
  1,838
  1,961
  2,088
  2,220
  2,355
  2,496
  2,642
  2,794
  2,952
  3,117
  3,289
  3,468
  3,656
  3,852
  4,057
  4,272
  4,496
  4,731
  4,977
  5,235
Issuance/(repurchase) of shares, $m
  -2,601
  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  
  -768
  666
  808
  924
  1,037
  1,149
  1,261
  1,373
  1,486
  1,601
  1,718
  1,838
  1,961
  2,088
  2,220
  2,355
  2,496
  2,642
  2,794
  2,952
  3,117
  3,289
  3,468
  3,656
  3,852
  4,057
  4,272
  4,496
  4,731
  4,977
  5,235
Total cash flow (excl. dividends), $m
  965
  7,642
  7,854
  8,065
  8,295
  8,545
  8,815
  9,105
  9,415
  9,747
  10,101
  9,930
  10,330
  10,754
  11,203
  11,679
  12,181
  12,712
  13,272
  13,864
  14,487
  15,144
  15,836
  16,565
  17,332
  18,140
  18,989
  19,883
  20,823
  21,812
  22,852
Retained Cash Flow (-), $m
  2,851
  -490
  -590
  -674
  -757
  -839
  -921
  -1,002
  -1,085
  -1,169
  -1,255
  -1,342
  -1,432
  -1,525
  -1,620
  -1,720
  -1,822
  -1,929
  -2,040
  -2,155
  -2,276
  -2,401
  -2,532
  -2,669
  -2,812
  -2,962
  -3,119
  -3,283
  -3,454
  -3,634
  -3,822
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
 
  7,152
  7,264
  7,391
  7,538
  7,706
  7,894
  8,102
  8,330
  8,578
  8,847
  8,588
  8,898
  9,229
  9,583
  9,959
  10,359
  10,783
  11,233
  11,708
  12,211
  12,743
  13,304
  13,895
  14,520
  15,178
  15,871
  16,601
  17,369
  18,178
  19,029
Discount rate, %
 
  6.90
  7.25
  7.61
  7.99
  8.39
  8.81
  9.25
  9.71
  10.19
  10.70
  11.24
  11.80
  12.39
  13.01
  13.66
  14.34
  15.06
  15.81
  16.61
  17.44
  18.31
  19.22
  20.18
  21.19
  22.25
  23.37
  24.53
  25.76
  27.05
  28.40
PV of cash for distribution, $m
 
  6,690
  6,316
  5,931
  5,543
  5,152
  4,758
  4,363
  3,969
  3,581
  3,200
  2,661
  2,333
  2,021
  1,729
  1,459
  1,213
  993
  799
  632
  491
  373
  278
  202
  144
  100
  68
  44
  28
  18
  11
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

Mondelez International, Inc. is a snack company. The Company manufactures and markets snack food and beverage products for consumers. It operates through four segments: Latin America, Asia, Middle East, and Africa (AMEA), Europe and North America. As of December 31, 2016, its brands spanned five product categories: Biscuits (including cookies, crackers and salted snacks); Chocolate; Gum and candy; Beverages (including coffee and powdered beverages), and Cheese and grocery. Itsportfolio includes various snack brands, including Nabisco, Oreo, LU and belVita biscuits; Cadbury, Milka, Cadbury Dairy Milk and Toblerone chocolate; Trident gum; Halls candy, and Tang powdered beverages. The Company sells its products to supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, distributors, convenience stores, gasoline stations, drug stores, value stores and retail food outlets. As of December 31, 2016, it sold its products to consumers in approximately 165 countries.

FINANCIAL RATIOS  of  Mondelez International Cl A (MDLZ)

Valuation Ratios
P/E Ratio 37.8
Price to Sales 2.4
Price to Book 2.5
Price to Tangible Book
Price to Cash Flow 22.1
Price to Free Cash Flow 38.8
Growth Rates
Sales Growth Rate -12.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -19.2%
Cap. Spend. - 3 Yr. Gr. Rate -5.5%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 52.5%
Total Debt to Equity 68.4%
Interest Coverage 3
Management Effectiveness
Return On Assets 3.6%
Ret/ On Assets - 3 Yr. Avg. 6.7%
Return On Total Capital 3.9%
Ret/ On T. Cap. - 3 Yr. Avg. 8.4%
Return On Equity 6.2%
Return On Equity - 3 Yr. Avg. 13.2%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 39.1%
Gross Margin - 3 Yr. Avg. 38.2%
EBITDA Margin 11.2%
EBITDA Margin - 3 Yr. Avg. 18.8%
Operating Margin 8.3%
Oper. Margin - 3 Yr. Avg. 15.4%
Pre-Tax Margin 5.6%
Pre-Tax Margin - 3 Yr. Avg. 13.2%
Net Profit Margin 6.4%
Net Profit Margin - 3 Yr. Avg. 12.4%
Effective Tax Rate 8.9%
Eff/ Tax Rate - 3 Yr. Avg. 10.1%
Payout Ratio 65.9%

MDLZ stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MDLZ stock intrinsic value calculation we used $25923 million for the last fiscal year's total revenue generated by Mondelez International Cl A. The default revenue input number comes from 2016 income statement of Mondelez International Cl A. 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 MDLZ 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 6.9%, whose default value for MDLZ is calculated based on our internal credit rating of Mondelez International Cl A, 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 Mondelez International Cl A.
    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 MDLZ stock the variable cost ratio is equal to 70%.

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 MDLZ 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 3.9% for Mondelez International Cl A.

Corporate tax rate of 27% is the nominal tax rate for Mondelez International Cl A. 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 MDLZ 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 MDLZ are equal to 103.1%.

Life of production assets of 57.4 years is the average useful life of capital assets used in Mondelez International Cl A 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 MDLZ is equal to -14.9%. 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 - $25161 million for Mondelez International Cl A - 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 1507.56 million for Mondelez International Cl A 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 Mondelez International Cl A at the current share price and the inputted number of shares is $61.8 billion.

RELATED COMPANIES Price Int.Val. Rating
PEP PepsiCo 111.61 59.61  sell
K Kellogg 61.45 22.76  str.sell
GIS General Mills 52.01 38.68  sell
LNCE Snyders-Lance 37.95 11.01  str.sell
HSY Hershey 109.02 30.04  str.sell
CPB Campbell Soup 45.97 25.53  sell
HAIN Hain Celestial 37.52 16.00  str.sell

COMPANY NEWS

▶ Could Mondelz Internationals Sales Rebound in 3Q17?   [Oct-19-17 11:06AM  Market Realist]
▶ Can Food Companies Get People to Make Impulse Purchases Online?   [Oct-15-17 10:54PM  The Wall Street Journal]
▶ [$$] Sweet result: how Mondelez invested in Cadbury's factory   [Oct-13-17 11:28PM  Financial Times]
▶ Is Mondelez a Safe Dividend Play Right Now?   [12:43PM  GuruFocus.com]
▶ Pershing Square Trims Its Stake in Mondelez   [Oct-09-17 09:33AM  Investopedia]
▶ Why Mondelz Stock Is Losing Steam   [10:38AM  Market Realist]
▶ Bill Ackman Pares Mondelez Stake   [Sep-27-17 05:36PM  GuruFocus.com]
▶ 11 Most Popular Snacks In The World   [09:30AM  Insider Monkey]
▶ Americans to spend $9.1 billion on Halloween   [Sep-22-17 12:55PM  Yahoo Finance Video]
▶ 8 Stocks Billionaires Own   [Sep-16-17 07:07AM  Motley Fool]
▶ Farewell Fairtrade? Food giants devise own logos   [Sep-04-17 08:56AM  Reuters Videos]
▶ Better Buy: Mondelez International vs Kraft Heinz   [Aug-30-17 06:32PM  Motley Fool]
▶ Someone at Berkshire (Not Warren Buffett) Sold Apple Stock   [11:39AM  The Wall Street Journal]
▶ [$$] B&G Foods Gobbles Up SnackWell, Back to Nature Brands   [12:23AM  The Wall Street Journal]
▶ [$$] B&G Foods Gobbles Up Snackwell, Back to Nature Brands   [Aug-20-17 10:49AM  The Wall Street Journal]
▶ B&G Foods Gobbles Up SnackWell, Back to Nature Brands   [10:49AM  The Wall Street Journal]
▶ Is Mondelez International Overvalued?   [Aug-13-17 07:31PM  Motley Fool]
Financial statements of MDLZ
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.