Intrinsic value of Post Holdings - POST

Previous Close

$82.08

  Intrinsic Value

$71.67

stock screener

  Rating & Target

hold

-13%

  Value-price divergence*

-67%

Previous close

$82.08

 
Intrinsic value

$71.67

 
Up/down potential

-13%

 
Rating

hold

 
Value-price divergence*

-67%

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

We calculate the intrinsic value of POST 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 5.3

 

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, %
  8.15
  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
  5,027
  5,128
  5,245
  5,380
  5,532
  5,699
  5,883
  6,084
  6,301
  6,534
  6,785
  7,053
  7,340
  7,644
  7,968
  8,312
  8,676
  9,062
  9,470
  9,900
  10,355
  10,835
  11,342
  11,875
  12,437
  13,029
  13,653
  14,309
  14,999
  15,726
  16,490
Variable operating expenses, $m
 
  1,778
  1,812
  1,851
  1,894
  1,942
  1,995
  2,052
  2,115
  2,182
  2,253
  2,022
  2,104
  2,192
  2,285
  2,383
  2,488
  2,598
  2,715
  2,839
  2,969
  3,107
  3,252
  3,405
  3,566
  3,736
  3,915
  4,103
  4,301
  4,509
  4,728
Fixed operating expenses, $m
 
  2,959
  3,033
  3,109
  3,187
  3,266
  3,348
  3,432
  3,518
  3,605
  3,696
  3,788
  3,883
  3,980
  4,079
  4,181
  4,286
  4,393
  4,503
  4,615
  4,731
  4,849
  4,970
  5,094
  5,222
  5,352
  5,486
  5,623
  5,764
  5,908
  6,056
Total operating expenses, $m
  4,568
  4,737
  4,845
  4,960
  5,081
  5,208
  5,343
  5,484
  5,633
  5,787
  5,949
  5,810
  5,987
  6,172
  6,364
  6,564
  6,774
  6,991
  7,218
  7,454
  7,700
  7,956
  8,222
  8,499
  8,788
  9,088
  9,401
  9,726
  10,065
  10,417
  10,784
Operating income, $m
  459
  390
  400
  421
  451
  491
  540
  600
  668
  747
  836
  1,243
  1,352
  1,473
  1,604
  1,747
  1,903
  2,071
  2,252
  2,446
  2,655
  2,880
  3,119
  3,376
  3,649
  3,941
  4,252
  4,583
  4,935
  5,309
  5,706
EBITDA, $m
  762
  877
  891
  916
  952
  998
  1,054
  1,120
  1,196
  1,283
  1,381
  1,489
  1,608
  1,739
  1,882
  2,037
  2,205
  2,387
  2,582
  2,792
  3,017
  3,257
  3,515
  3,790
  4,083
  4,396
  4,728
  5,082
  5,458
  5,857
  6,281
Interest expense (income), $m
  310
  314
  323
  333
  345
  358
  373
  389
  406
  425
  445
  467
  491
  515
  542
  570
  600
  632
  665
  701
  738
  778
  820
  864
  910
  959
  1,011
  1,065
  1,122
  1,182
  1,245
Earnings before tax, $m
  -30
  76
  77
  87
  106
  133
  168
  211
  262
  322
  391
  776
  862
  957
  1,062
  1,177
  1,303
  1,439
  1,586
  1,746
  1,917
  2,102
  2,300
  2,512
  2,739
  2,982
  3,241
  3,518
  3,813
  4,127
  4,461
Tax expense, $m
  -27
  21
  21
  24
  29
  36
  45
  57
  71
  87
  105
  209
  233
  258
  287
  318
  352
  388
  428
  471
  518
  567
  621
  678
  740
  805
  875
  950
  1,029
  1,114
  1,204
Net income, $m
  -3
  56
  56
  64
  77
  97
  122
  154
  192
  235
  285
  566
  629
  699
  775
  859
  951
  1,050
  1,158
  1,274
  1,399
  1,534
  1,679
  1,834
  2,000
  2,177
  2,366
  2,568
  2,783
  3,012
  3,256

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,144
  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
  9,361
  8,378
  8,571
  8,791
  9,039
  9,313
  9,613
  9,941
  10,295
  10,677
  11,087
  11,525
  11,993
  12,491
  13,020
  13,582
  14,177
  14,807
  15,473
  16,177
  16,921
  17,705
  18,532
  19,404
  20,322
  21,290
  22,309
  23,381
  24,509
  25,696
  26,944
Adjusted assets (=assets-cash), $m
  8,217
  8,378
  8,571
  8,791
  9,039
  9,313
  9,613
  9,941
  10,295
  10,677
  11,087
  11,525
  11,993
  12,491
  13,020
  13,582
  14,177
  14,807
  15,473
  16,177
  16,921
  17,705
  18,532
  19,404
  20,322
  21,290
  22,309
  23,381
  24,509
  25,696
  26,944
Revenue / Adjusted assets
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
  0.612
Average production assets, $m
  4,245
  4,328
  4,427
  4,541
  4,669
  4,810
  4,966
  5,135
  5,318
  5,515
  5,727
  5,953
  6,195
  6,452
  6,725
  7,015
  7,323
  7,648
  7,992
  8,356
  8,740
  9,145
  9,572
  10,023
  10,497
  10,997
  11,523
  12,077
  12,660
  13,273
  13,918
Working capital, $m
  1,443
  318
  325
  334
  343
  353
  365
  377
  391
  405
  421
  437
  455
  474
  494
  515
  538
  562
  587
  614
  642
  672
  703
  736
  771
  808
  846
  887
  930
  975
  1,022
Total debt, $m
  4,564
  4,680
  4,829
  4,999
  5,190
  5,401
  5,633
  5,886
  6,160
  6,455
  6,771
  7,109
  7,470
  7,855
  8,263
  8,697
  9,157
  9,643
  10,157
  10,701
  11,275
  11,880
  12,519
  13,192
  13,901
  14,648
  15,434
  16,262
  17,133
  18,049
  19,013
Total liabilities, $m
  6,352
  6,468
  6,617
  6,787
  6,978
  7,189
  7,421
  7,674
  7,948
  8,243
  8,559
  8,897
  9,258
  9,643
  10,051
  10,485
  10,945
  11,431
  11,945
  12,489
  13,063
  13,668
  14,307
  14,980
  15,689
  16,436
  17,222
  18,050
  18,921
  19,837
  20,801
Total equity, $m
  3,009
  1,910
  1,954
  2,004
  2,061
  2,123
  2,192
  2,266
  2,347
  2,434
  2,528
  2,628
  2,734
  2,848
  2,969
  3,097
  3,232
  3,376
  3,528
  3,688
  3,858
  4,037
  4,225
  4,424
  4,634
  4,854
  5,086
  5,331
  5,588
  5,859
  6,143
Total liabilities and equity, $m
  9,361
  8,378
  8,571
  8,791
  9,039
  9,312
  9,613
  9,940
  10,295
  10,677
  11,087
  11,525
  11,992
  12,491
  13,020
  13,582
  14,177
  14,807
  15,473
  16,177
  16,921
  17,705
  18,532
  19,404
  20,323
  21,290
  22,308
  23,381
  24,509
  25,696
  26,944
Debt-to-equity ratio
  1.517
  2.450
  2.470
  2.490
  2.520
  2.540
  2.570
  2.600
  2.620
  2.650
  2.680
  2.710
  2.730
  2.760
  2.780
  2.810
  2.830
  2.860
  2.880
  2.900
  2.920
  2.940
  2.960
  2.980
  3.000
  3.020
  3.030
  3.050
  3.070
  3.080
  3.090
Adjusted equity ratio
  0.227
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228
  0.228

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -3
  56
  56
  64
  77
  97
  122
  154
  192
  235
  285
  566
  629
  699
  775
  859
  951
  1,050
  1,158
  1,274
  1,399
  1,534
  1,679
  1,834
  2,000
  2,177
  2,366
  2,568
  2,783
  3,012
  3,256
Depreciation, amort., depletion, $m
  303
  487
  491
  496
  501
  507
  513
  520
  528
  536
  545
  246
  256
  267
  278
  290
  303
  316
  330
  345
  361
  378
  396
  414
  434
  454
  476
  499
  523
  548
  575
Funds from operations, $m
  484
  542
  547
  559
  578
  604
  636
  674
  719
  771
  830
  812
  885
  965
  1,053
  1,149
  1,254
  1,366
  1,488
  1,620
  1,761
  1,912
  2,074
  2,248
  2,433
  2,631
  2,842
  3,067
  3,306
  3,561
  3,831
Change in working capital, $m
  -18
  6
  7
  8
  9
  10
  11
  12
  13
  14
  16
  17
  18
  19
  20
  21
  23
  24
  25
  27
  28
  30
  31
  33
  35
  37
  39
  41
  43
  45
  47
Cash from operations, $m
  502
  536
  540
  551
  569
  593
  624
  662
  706
  757
  814
  796
  867
  947
  1,033
  1,128
  1,231
  1,342
  1,463
  1,593
  1,732
  1,882
  2,043
  2,215
  2,398
  2,595
  2,804
  3,026
  3,264
  3,516
  3,784
Maintenance CAPEX, $m
  0
  -175
  -179
  -183
  -188
  -193
  -199
  -205
  -212
  -220
  -228
  -237
  -246
  -256
  -267
  -278
  -290
  -303
  -316
  -330
  -345
  -361
  -378
  -396
  -414
  -434
  -454
  -476
  -499
  -523
  -548
New CAPEX, $m
  -122
  -83
  -100
  -114
  -128
  -142
  -155
  -169
  -183
  -197
  -212
  -226
  -242
  -257
  -273
  -290
  -307
  -325
  -344
  -364
  -384
  -405
  -427
  -450
  -474
  -500
  -526
  -554
  -583
  -613
  -645
Cash from investing activities, $m
  -196
  -258
  -279
  -297
  -316
  -335
  -354
  -374
  -395
  -417
  -440
  -463
  -488
  -513
  -540
  -568
  -597
  -628
  -660
  -694
  -729
  -766
  -805
  -846
  -888
  -934
  -980
  -1,030
  -1,082
  -1,136
  -1,193
Free cash flow, $m
  306
  278
  262
  254
  253
  259
  270
  287
  311
  340
  375
  333
  380
  433
  493
  560
  634
  714
  803
  899
  1,003
  1,116
  1,238
  1,369
  1,510
  1,661
  1,823
  1,996
  2,182
  2,380
  2,591
Issuance/(repayment) of debt, $m
  118
  128
  149
  170
  191
  212
  232
  253
  274
  295
  316
  338
  361
  384
  409
  434
  459
  486
  514
  543
  574
  605
  639
  673
  709
  747
  786
  828
  871
  916
  964
Issuance/(repurchase) of shares, $m
  -4
  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  
  9
  128
  149
  170
  191
  212
  232
  253
  274
  295
  316
  338
  361
  384
  409
  434
  459
  486
  514
  543
  574
  605
  639
  673
  709
  747
  786
  828
  871
  916
  964
Total cash flow (excl. dividends), $m
  316
  406
  411
  424
  444
  470
  502
  540
  584
  634
  691
  671
  741
  818
  902
  994
  1,093
  1,201
  1,317
  1,442
  1,577
  1,722
  1,876
  2,042
  2,219
  2,408
  2,609
  2,824
  3,053
  3,296
  3,555
Retained Cash Flow (-), $m
  -33
  -33
  -44
  -50
  -56
  -62
  -69
  -75
  -81
  -87
  -93
  -100
  -107
  -114
  -121
  -128
  -136
  -144
  -152
  -161
  -169
  -179
  -189
  -199
  -209
  -221
  -232
  -244
  -257
  -271
  -285
Prev. year cash balance distribution, $m
 
  1,132
  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
 
  1,505
  367
  374
  388
  408
  434
  465
  503
  547
  598
  571
  634
  704
  781
  866
  957
  1,057
  1,165
  1,282
  1,408
  1,543
  1,688
  1,843
  2,010
  2,187
  2,377
  2,580
  2,796
  3,025
  3,270
Discount rate, %
 
  8.00
  8.40
  8.82
  9.26
  9.72
  10.21
  10.72
  11.26
  11.82
  12.41
  13.03
  13.68
  14.37
  15.09
  15.84
  16.63
  17.46
  18.34
  19.25
  20.22
  21.23
  22.29
  23.40
  24.57
  25.80
  27.09
  28.45
  29.87
  31.36
  32.93
PV of cash for distribution, $m
 
  1,393
  312
  290
  272
  256
  242
  228
  214
  200
  185
  148
  136
  123
  109
  95
  82
  69
  56
  45
  35
  27
  20
  15
  10
  7
  5
  3
  2
  1
  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

Post Holdings, Inc. operates as a consumer packaged goods holding company in the United States and internationally. The company operates in four segments: Post Consumer Brands, Michael Foods Group, Active Nutrition, and Private Brands. It manufactures, markets, and sells ready-to-eat cereal and hot cereal products; and egg, refrigerated potato, cheese and other dairy case, and pasta products. The company also markets and distributes protein beverages, bars, powders, and gels; and ready-to-drink beverages. In addition, it manufactures and distributes peanut and other nut butters, baking nuts, dried fruits, and trail mixes; natural and organic cereals and snacks; and granola, as well as provides peanut blanching, granulation, and roasting services to the peanut industry. The company markets its products under the Honey Bunches of Oats, Pebbles, Great Grains, Grape-Nuts, Post Shredded Wheat, Oh’s, Honeycomb, Golden Crisp, Post Raisin Bran, Alpha-Bits, Shreddies, Malt-O-Meal, bagged cereal, Mom’s Best, Malt-O-Meal Hot Wheat, Coco Wheats, Better Oats, Mom’s Best Oatmeal, Better’n Eggs, All Whites, Papetti’s, Abbotsford Farms, Emulsa, EasyEggs, Table Ready, Davidson’s Safest Choice, Simply Potatoes, Diner’s Choice, Crystal Farms, Crescent Valley, Westfield Farms, David’s Deli, Premier Protein, Dymatize, Supreme Protein, PowerBar, Joint Juice, Uncle Sam, Attune, Erewhon, Golden Temple, Peace Cereal, Sweet Home Farm, and Willamette Valley Granola Company brands. It sells its products to grocery, mass merchandise, supercenters, club store, and drug store customers; military, Internet, and foodservice channels; foodservice distributors, restaurant chains, retail grocery stores, and food manufacturers and processors; convenient and supplement stores; and foodservice and food ingredient customers through internal sales staff, broker organizations, and direct sales forces. The company was founded in 1895 and is headquartered in St. Louis, Missouri.

FINANCIAL RATIOS  of  Post Holdings (POST)

Valuation Ratios
P/E Ratio -1775.7
Price to Sales 1.1
Price to Book 1.8
Price to Tangible Book
Price to Cash Flow 10.6
Price to Free Cash Flow 14
Growth Rates
Sales Growth Rate 8.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 13%
Cap. Spend. - 3 Yr. Gr. Rate 29.9%
Financial Strength
Quick Ratio 95
Current Ratio 0
LT Debt to Equity 151.3%
Total Debt to Equity 151.7%
Interest Coverage 1
Management Effectiveness
Return On Assets 0.3%
Ret/ On Assets - 3 Yr. Avg. -1.1%
Return On Total Capital -0%
Ret/ On T. Cap. - 3 Yr. Avg. -3.1%
Return On Equity -0.1%
Return On Equity - 3 Yr. Avg. -7.5%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 30.8%
Gross Margin - 3 Yr. Avg. 27.3%
EBITDA Margin 11.6%
EBITDA Margin - 3 Yr. Avg. 4.5%
Operating Margin 9.1%
Oper. Margin - 3 Yr. Avg. 1.7%
Pre-Tax Margin -0.6%
Pre-Tax Margin - 3 Yr. Avg. -7.3%
Net Profit Margin -0.1%
Net Profit Margin - 3 Yr. Avg. -5.6%
Effective Tax Rate 90%
Eff/ Tax Rate - 3 Yr. Avg. 46.9%
Payout Ratio -466.7%

POST stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the POST stock intrinsic value calculation we used $5027 million for the last fiscal year's total revenue generated by Post Holdings. The default revenue input number comes from 2016 income statement of Post Holdings. 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 POST 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%, whose default value for POST is calculated based on our internal credit rating of Post Holdings, 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 Post Holdings.
    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 POST stock the variable cost ratio is equal to 34.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2887 million in the base year in the intrinsic value calculation for POST 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 6.9% for Post Holdings.

Corporate tax rate of 27% is the nominal tax rate for Post Holdings. 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 POST 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 POST are equal to 84.4%.

Life of production assets of 24.2 years is the average useful life of capital assets used in Post Holdings 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 POST is equal to 6.2%. 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 - $3009 million for Post Holdings - 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 63.981 million for Post Holdings 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 Post Holdings at the current share price and the inputted number of shares is $5.3 billion.

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HAIN Hain Celestial 43.76 28.74  sell
PF Pinnacle Foods 61.15 33.86  sell
BGS B&G Foods 37.25 27.64  hold
JJSF J&J Snack Food 136.86 62.28  str.sell
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COMPANY NEWS

▶ Post Holdings Completes Acquisition of Weetabix   [Jul-03-17 08:01AM  GlobeNewswire]
▶ ETFs with exposure to Post Holdings, Inc. : June 15, 2017   [Jun-15-17 03:00PM  Capital Cube]
▶ New Strong Sell Stocks for May 31st   [May-31-17 09:23AM  Zacks]
▶ New Strong Sell Stocks for May 26th   [May-26-17 09:23AM  Zacks]
▶ [$$] Can't Get Enough   [May-22-17 05:45PM  The Wall Street Journal]
▶ LPC: Love-hate reception for US leveraged loans   [May-19-17 12:14PM  Reuters]
▶ ETFs with exposure to Post Holdings, Inc. : May 16, 2017   [May-16-17 12:58PM  Capital Cube]
▶ Post Holdings reports 2Q loss   [May-08-17 05:19PM  Associated Press]
▶ Post Holdings likely suitor for Reckitt's food business: Report   [May-02-17 07:37PM  American City Business Journals]
▶ Cereal Makers Grapple With Worlds Obesity Crisis   [Apr-24-17 01:26PM  Investopedia]
▶ [$$] Fill 'Er Up   [10:09AM  The Wall Street Journal]
▶ [$$] Week in Review, April 22   [Apr-21-17 05:47PM  Financial Times]
▶ Company News for April 19, 2017   [Apr-19-17 11:13AM  Zacks]
▶ [$$] Weetabix: Post truth   [09:16AM  Financial Times]
▶ Post Holdings acquires Weetabix for nearly $1.8 billion   [07:33AM  American City Business Journals]
▶ [$$] Post Holdings Buys Weetabix in $1.76 Billion Deal   [06:17AM  The Wall Street Journal]
▶ Post Adds Weetabix to Breakfast Bowl   [05:05AM  TheStreet.com]
▶ Post Holdings among 2 bidders for Weetabix: Report   [Mar-09-17 08:55AM  at bizjournals.com]
▶ Post Holdings among 2 bidders for Weetabix: Report   [08:55AM  American City Business Journals]
▶ Post Holdings Inc Sees Jump in First-Quarter Earnings   [Feb-04-17 11:05AM  at Motley Fool]
Stock chart of POST Financial statements of POST Annual reports of POST
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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