Intrinsic value of Campbell Soup Company - CPB

Previous Close

$42.26

  Intrinsic Value

$112.62

stock screener

  Rating & Target

str. buy

+166%

Previous close

$42.26

 
Intrinsic value

$112.62

 
Up/down potential

+166%

 
Rating

str. buy

We calculate the intrinsic value of CPB 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 0001), $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 12.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  24.40
  22.46
  20.71
  19.14
  17.73
  16.46
  15.31
  14.28
  13.35
  12.52
  11.76
  11.09
  10.48
  9.93
  9.44
  8.99
  8.59
  8.24
  7.91
  7.62
  7.36
  7.12
  6.91
  6.72
  6.55
  6.39
  6.25
  6.13
  6.02
  5.91
Revenue, $m
  10,804
  13,231
  15,971
  19,029
  22,402
  26,089
  30,083
  34,378
  38,968
  43,845
  49,003
  54,437
  60,141
  66,114
  72,354
  78,862
  85,640
  92,693
  100,026
  107,649
  115,570
  123,802
  132,358
  141,251
  150,500
  160,121
  170,134
  180,560
  191,421
  202,741
Variable operating expenses, $m
  8,678
  10,430
  12,408
  14,615
  17,051
  19,712
  22,596
  25,697
  29,011
  32,532
  35,378
  39,301
  43,419
  47,731
  52,236
  56,934
  61,828
  66,920
  72,214
  77,717
  83,436
  89,379
  95,556
  101,977
  108,653
  115,599
  122,828
  130,355
  138,197
  146,369
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
  8,678
  10,430
  12,408
  14,615
  17,051
  19,712
  22,596
  25,697
  29,011
  32,532
  35,378
  39,301
  43,419
  47,731
  52,236
  56,934
  61,828
  66,920
  72,214
  77,717
  83,436
  89,379
  95,556
  101,977
  108,653
  115,599
  122,828
  130,355
  138,197
  146,369
Operating income, $m
  2,126
  2,801
  3,563
  4,413
  5,351
  6,376
  7,487
  8,681
  9,957
  11,313
  13,625
  15,136
  16,722
  18,383
  20,118
  21,927
  23,812
  25,773
  27,812
  29,932
  32,134
  34,423
  36,802
  39,275
  41,846
  44,521
  47,305
  50,204
  53,224
  56,372
EBITDA, $m
  3,327
  4,075
  4,919
  5,860
  6,899
  8,034
  9,264
  10,587
  12,001
  13,503
  15,091
  16,764
  18,521
  20,360
  22,282
  24,286
  26,374
  28,546
  30,804
  33,151
  35,591
  38,126
  40,761
  43,500
  46,348
  49,311
  52,394
  55,605
  58,950
  62,436
Interest expense (income), $m
  110
  534
  701
  899
  1,121
  1,370
  1,644
  1,944
  2,268
  2,617
  2,990
  3,387
  3,806
  4,248
  4,711
  5,197
  5,704
  6,233
  6,783
  7,357
  7,953
  8,572
  9,216
  9,885
  10,580
  11,303
  12,055
  12,837
  13,650
  14,498
  15,380
Earnings before tax, $m
  1,592
  2,100
  2,665
  3,292
  3,981
  4,732
  5,543
  6,413
  7,340
  8,323
  10,239
  11,330
  12,475
  13,672
  14,921
  16,224
  17,579
  18,990
  20,456
  21,979
  23,562
  25,207
  26,917
  28,694
  30,543
  32,467
  34,469
  36,554
  38,727
  40,991
Tax expense, $m
  430
  567
  719
  889
  1,075
  1,278
  1,497
  1,732
  1,982
  2,247
  2,764
  3,059
  3,368
  3,691
  4,029
  4,380
  4,746
  5,127
  5,523
  5,934
  6,362
  6,806
  7,268
  7,747
  8,247
  8,766
  9,307
  9,870
  10,456
  11,068
Net income, $m
  1,162
  1,533
  1,945
  2,403
  2,906
  3,455
  4,047
  4,681
  5,358
  6,076
  7,474
  8,271
  9,107
  9,980
  10,893
  11,843
  12,833
  13,862
  14,933
  16,045
  17,200
  18,401
  19,649
  20,947
  22,296
  23,701
  25,162
  26,684
  28,270
  29,924

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  18,067
  22,125
  26,708
  31,821
  37,462
  43,626
  50,306
  57,489
  65,164
  73,320
  81,946
  91,032
  100,571
  110,559
  120,993
  131,876
  143,211
  155,004
  167,268
  180,015
  193,262
  207,027
  221,334
  236,206
  251,671
  267,760
  284,504
  301,939
  320,102
  339,032
Adjusted assets (=assets-cash), $m
  18,067
  22,125
  26,708
  31,821
  37,462
  43,626
  50,306
  57,489
  65,164
  73,320
  81,946
  91,032
  100,571
  110,559
  120,993
  131,876
  143,211
  155,004
  167,268
  180,015
  193,262
  207,027
  221,334
  236,206
  251,671
  267,760
  284,504
  301,939
  320,102
  339,032
Revenue / Adjusted assets
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
  0.598
Average production assets, $m
  7,271
  8,904
  10,749
  12,806
  15,077
  17,558
  20,246
  23,137
  26,226
  29,508
  32,979
  36,636
  40,475
  44,495
  48,694
  53,074
  57,636
  62,382
  67,318
  72,448
  77,779
  83,319
  89,077
  95,062
  101,286
  107,761
  114,500
  121,517
  128,826
  136,445
Working capital, $m
  465
  569
  687
  818
  963
  1,122
  1,294
  1,478
  1,676
  1,885
  2,107
  2,341
  2,586
  2,843
  3,111
  3,391
  3,683
  3,986
  4,301
  4,629
  4,970
  5,323
  5,691
  6,074
  6,471
  6,885
  7,316
  7,764
  8,231
  8,718
Total debt, $m
  12,989
  16,641
  20,766
  25,368
  30,445
  35,993
  42,004
  48,469
  55,377
  62,717
  70,480
  78,657
  87,243
  96,232
  105,623
  115,417
  125,618
  136,233
  147,270
  158,743
  170,664
  183,053
  195,929
  209,314
  223,233
  237,713
  252,783
  268,474
  284,820
  301,857
Total liabilities, $m
  16,260
  19,912
  24,037
  28,639
  33,716
  39,264
  45,275
  51,740
  58,648
  65,988
  73,751
  81,928
  90,514
  99,503
  108,894
  118,688
  128,889
  139,504
  150,541
  162,014
  173,935
  186,324
  199,200
  212,585
  226,504
  240,984
  256,054
  271,745
  288,091
  305,128
Total equity, $m
  1,807
  2,212
  2,671
  3,182
  3,746
  4,363
  5,031
  5,749
  6,516
  7,332
  8,195
  9,103
  10,057
  11,056
  12,099
  13,188
  14,321
  15,500
  16,727
  18,002
  19,326
  20,703
  22,133
  23,621
  25,167
  26,776
  28,450
  30,194
  32,010
  33,903
Total liabilities and equity, $m
  18,067
  22,124
  26,708
  31,821
  37,462
  43,627
  50,306
  57,489
  65,164
  73,320
  81,946
  91,031
  100,571
  110,559
  120,993
  131,876
  143,210
  155,004
  167,268
  180,016
  193,261
  207,027
  221,333
  236,206
  251,671
  267,760
  284,504
  301,939
  320,101
  339,031
Debt-to-equity ratio
  7.190
  7.520
  7.780
  7.970
  8.130
  8.250
  8.350
  8.430
  8.500
  8.550
  8.600
  8.640
  8.670
  8.700
  8.730
  8.750
  8.770
  8.790
  8.800
  8.820
  8.830
  8.840
  8.850
  8.860
  8.870
  8.880
  8.890
  8.890
  8.900
  8.900
Adjusted equity ratio
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,162
  1,533
  1,945
  2,403
  2,906
  3,455
  4,047
  4,681
  5,358
  6,076
  7,474
  8,271
  9,107
  9,980
  10,893
  11,843
  12,833
  13,862
  14,933
  16,045
  17,200
  18,401
  19,649
  20,947
  22,296
  23,701
  25,162
  26,684
  28,270
  29,924
Depreciation, amort., depletion, $m
  1,201
  1,273
  1,355
  1,447
  1,548
  1,658
  1,777
  1,906
  2,043
  2,189
  1,466
  1,628
  1,799
  1,978
  2,164
  2,359
  2,562
  2,773
  2,992
  3,220
  3,457
  3,703
  3,959
  4,225
  4,502
  4,789
  5,089
  5,401
  5,726
  6,064
Funds from operations, $m
  2,363
  2,806
  3,300
  3,850
  4,454
  5,112
  5,824
  6,587
  7,401
  8,265
  8,940
  9,899
  10,905
  11,958
  13,057
  14,202
  15,395
  16,635
  17,924
  19,265
  20,657
  22,104
  23,608
  25,172
  26,798
  28,490
  30,251
  32,085
  33,996
  35,988
Change in working capital, $m
  91
  104
  118
  131
  145
  159
  172
  185
  197
  210
  222
  234
  245
  257
  268
  280
  291
  303
  315
  328
  341
  354
  368
  382
  398
  414
  431
  448
  467
  487
Cash from operations, $m
  2,272
  2,702
  3,183
  3,718
  4,309
  4,954
  5,652
  6,403
  7,204
  8,055
  8,718
  9,666
  10,660
  11,701
  12,788
  13,922
  15,103
  16,332
  17,609
  18,937
  20,316
  21,750
  23,240
  24,789
  26,400
  28,076
  29,821
  31,637
  33,529
  35,501
Maintenance CAPEX, $m
  -260
  -323
  -396
  -478
  -569
  -670
  -780
  -900
  -1,028
  -1,166
  -1,311
  -1,466
  -1,628
  -1,799
  -1,978
  -2,164
  -2,359
  -2,562
  -2,773
  -2,992
  -3,220
  -3,457
  -3,703
  -3,959
  -4,225
  -4,502
  -4,789
  -5,089
  -5,401
  -5,726
New CAPEX, $m
  -1,425
  -1,633
  -1,844
  -2,058
  -2,270
  -2,481
  -2,688
  -2,891
  -3,089
  -3,282
  -3,471
  -3,657
  -3,839
  -4,020
  -4,199
  -4,380
  -4,562
  -4,747
  -4,936
  -5,130
  -5,331
  -5,540
  -5,758
  -5,985
  -6,224
  -6,475
  -6,739
  -7,017
  -7,310
  -7,618
Cash from investing activities, $m
  -1,685
  -1,956
  -2,240
  -2,536
  -2,839
  -3,151
  -3,468
  -3,791
  -4,117
  -4,448
  -4,782
  -5,123
  -5,467
  -5,819
  -6,177
  -6,544
  -6,921
  -7,309
  -7,709
  -8,122
  -8,551
  -8,997
  -9,461
  -9,944
  -10,449
  -10,977
  -11,528
  -12,106
  -12,711
  -13,344
Free cash flow, $m
  587
  746
  942
  1,183
  1,470
  1,803
  2,184
  2,612
  3,087
  3,607
  3,935
  4,543
  5,193
  5,883
  6,611
  7,378
  8,183
  9,024
  9,901
  10,815
  11,765
  12,753
  13,780
  14,845
  15,951
  17,100
  18,292
  19,531
  20,819
  22,157
Issuance/(repayment) of debt, $m
  3,095
  3,652
  4,125
  4,601
  5,077
  5,548
  6,011
  6,465
  6,908
  7,340
  7,763
  8,177
  8,585
  8,989
  9,391
  9,794
  10,201
  10,615
  11,037
  11,472
  11,922
  12,389
  12,876
  13,385
  13,919
  14,480
  15,070
  15,691
  16,346
  17,037
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  3,095
  3,652
  4,125
  4,601
  5,077
  5,548
  6,011
  6,465
  6,908
  7,340
  7,763
  8,177
  8,585
  8,989
  9,391
  9,794
  10,201
  10,615
  11,037
  11,472
  11,922
  12,389
  12,876
  13,385
  13,919
  14,480
  15,070
  15,691
  16,346
  17,037
Total cash flow (excl. dividends), $m
  3,682
  4,398
  5,067
  5,784
  6,547
  7,351
  8,195
  9,077
  9,995
  10,948
  11,698
  12,721
  13,778
  14,872
  16,003
  17,173
  18,384
  19,638
  20,938
  22,287
  23,687
  25,142
  26,655
  28,230
  29,870
  31,580
  33,362
  35,222
  37,165
  39,194
Retained Cash Flow (-), $m
  -443
  -406
  -458
  -511
  -564
  -616
  -668
  -718
  -768
  -816
  -863
  -909
  -954
  -999
  -1,043
  -1,088
  -1,133
  -1,179
  -1,226
  -1,275
  -1,325
  -1,377
  -1,431
  -1,487
  -1,547
  -1,609
  -1,674
  -1,743
  -1,816
  -1,893
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
  3,239
  3,992
  4,609
  5,273
  5,983
  6,735
  7,527
  8,358
  9,227
  10,132
  10,836
  11,812
  12,824
  13,873
  14,959
  16,084
  17,250
  18,459
  19,712
  21,012
  22,363
  23,766
  25,225
  26,743
  28,324
  29,971
  31,688
  33,479
  35,349
  37,301
Discount rate, %
  12.00
  12.60
  13.23
  13.89
  14.59
  15.32
  16.08
  16.89
  17.73
  18.62
  19.55
  20.52
  21.55
  22.63
  23.76
  24.95
  26.19
  27.50
  28.88
  30.32
  31.84
  33.43
  35.10
  36.86
  38.70
  40.64
  42.67
  44.80
  47.04
  49.39
PV of cash for distribution, $m
  2,892
  3,148
  3,175
  3,134
  3,028
  2,864
  2,650
  2,399
  2,124
  1,838
  1,520
  1,257
  1,014
  798
  611
  456
  330
  233
  159
  105
  67
  42
  25
  14
  8
  4
  2
  1
  0
  0
Current shareholders' claim on cash, %
  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

Campbell Soup Company is a food company, which manufactures and markets food products. The Company's segments include Americas Simple Meals and Beverages; Global Biscuits and Snacks, and Campbell Fresh. The Americas Simple Meals and Beverages segment includes the retail and food service channel businesses. The segment includes the products, such as Campbell's condensed and ready-to-serve soups; Swanson broth and stocks; Prego pasta sauces; Pace Mexican sauces; Campbell's gravies, pasta, beans and dinner sauces; Plum food and snacks; V8 juices and beverages, and Campbell's tomato juice. The Global Biscuits and Snacks segment includes Pepperidge Farm cookies, crackers, bakery and frozen products; Arnott's biscuits, and Kelsen cookies. The Campbell Fresh segment includes Bolthouse Farms fresh carrots, carrot ingredients, refrigerated beverages and refrigerated salad dressings; Garden Fresh Gourmet salsa, hummus, dips and tortilla chips, and the United States refrigerated soup business.

FINANCIAL RATIOS  of  Campbell Soup Company (CPB)

Valuation Ratios
P/E Ratio 14.3
Price to Sales 1.6
Price to Book 7.8
Price to Tangible Book
Price to Cash Flow 9.9
Price to Free Cash Flow 13.3
Growth Rates
Sales Growth Rate -0.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -0.9%
Cap. Spend. - 3 Yr. Gr. Rate -0.5%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 152.7%
Total Debt to Equity 216%
Interest Coverage 13
Management Effectiveness
Return On Assets 12.4%
Ret/ On Assets - 3 Yr. Avg. 9.9%
Return On Total Capital 17.3%
Ret/ On T. Cap. - 3 Yr. Avg. 13.3%
Return On Equity 56.1%
Return On Equity - 3 Yr. Avg. 46.4%
Asset Turnover 1
Profitability Ratios
Gross Margin 38.7%
Gross Margin - 3 Yr. Avg. 36%
EBITDA Margin 21.8%
EBITDA Margin - 3 Yr. Avg. 18.2%
Operating Margin 17.7%
Oper. Margin - 3 Yr. Avg. 14.2%
Pre-Tax Margin 16.4%
Pre-Tax Margin - 3 Yr. Avg. 12.9%
Net Profit Margin 11.2%
Net Profit Margin - 3 Yr. Avg. 8.9%
Effective Tax Rate 31.4%
Eff/ Tax Rate - 3 Yr. Avg. 31.6%
Payout Ratio 47.4%

CPB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CPB stock intrinsic value calculation we used $8685 million for the last fiscal year's total revenue generated by Campbell Soup Company. The default revenue input number comes from 0001 income statement of Campbell Soup Company. 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 CPB stock valuation model: a) initial revenue growth rate of 24.4% 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 12%, whose default value for CPB is calculated based on our internal credit rating of Campbell Soup Company, 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 Campbell Soup Company.
    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 CPB stock the variable cost ratio is equal to 82.3%.

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 CPB 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 5.4% for Campbell Soup Company.

Corporate tax rate of 27% is the nominal tax rate for Campbell Soup Company. 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 CPB 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 CPB are equal to 67.3%.

Life of production assets of 22.5 years is the average useful life of capital assets used in Campbell Soup Company 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 CPB is equal to 4.3%. 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 - $1364 million for Campbell Soup Company - 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 301.027 million for Campbell Soup Company 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 Campbell Soup Company at the current share price and the inputted number of shares is $12.7 billion.

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