Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 5.39%, lower than industry average of 8.86%.

Growth Trajectory

Profitability

In the growth phase company makes 14.16% profit on every dollar of sales, higher than industry average of 8.45%.

Profitability Trajectory

Risk Profile

Investors expect at least 6.40% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
22.33B USD
Equity Value
16.09B USD
FCF Yield
54.77%
Average ROIC
14.88%
Cost of Capital
7.28%
P/E Ratio
17.82x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues12.64B USD12.75B USD
Operating Income or EBIT1.89B USD1.97B USD
Interest Expense271M USD311M USD
Book Value Of Equity4.11B USD3.77B USD
Book Value Of Debt6.48B USD6.34B USD
Cash and Marketable Securities354M USD694M USD
Number of Shares Outstanding347.67M--
Minority interests107M USD0 USD
Current Stock Price79.50 USD--
Effective Tax Rate18.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-9.69%
-0.84%Company
vs
8.86%Industry
Below Industry
Operating Margin
+6.51%
14.95%Company
vs
8.44%Industry
Above Industry
Kellanova demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 55% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 12.35B USD Add
Present Value (Cash Flow Over Next 10 Years) 9.98B USD Add
Value of Operating Assets 22.33B USD Sub-total
Debt 6.48B USD Subtract
Minority Interests 107.00M USD Subtract
Cash 354.00M USD Add
Value of Equity 16.09B USD Sub-total
Number of Shares 347.67M shares Divisor
Estimated Value per Share (Fair Value) 46.30 USD Total
Current Market Price 79.50 USD Reference

Financial Projections

Total FCF Present Value
9.98B USD
Avg Revenue Growth
4.43%
Avg Operating Margin
13.98%
Avg ROIC
14.88%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue12.94B USD13.64B USD14.38B USD15.15B USD15.97B USD16.81B USD17.66B USD18.53B USD19.41B USD20.30B USD21.24B USD
Growth Rate 2.41% 5.39% 5.39% 5.39% 5.39% 5.23% 5.07% 4.91% 4.75% 4.59% 4.59%
PROFITABILITY
Operating Income1.93B USD1.96B USD2.03B USD2.10B USD2.17B USD2.29B USD2.40B USD2.52B USD2.64B USD2.76B USD2.89B USD
Operating Margin 14.95% 14.42% 14.15% 13.89% 13.62% 13.62% 13.62% 13.62% 13.62% 13.62% 13.62%
EBIT (1-tax)1.58B USD1.61B USD1.66B USD1.72B USD1.78B USD1.84B USD1.90B USD1.96B USD2.02B USD2.07B USD2.17B USD
CASH FLOW
Reinvestment269.19M USD283.71M USD299.01M USD315.14M USD322.36M USD502.78M USD511.77M USD519.59M USD526.15M USD550.35M USD1.13B USD
Free Cash Flow1.31B USD1.33B USD1.37B USD1.41B USD1.46B USD1.34B USD1.39B USD1.44B USD1.49B USD1.52B USD1.04B USD
Terminal Value--------------------24.59B USD
Present Value1.23B USD1.17B USD1.13B USD1.10B USD1.07B USD921.97M USD891.29M USD856.32M USD817.66M USD766.41M USD—
EFFICIENCY
ROIC 15.50% 15.36% 15.47% 15.57% 15.65% 15.74% 15.58% 15.42% 15.24% 15.05% 8.83%
Cost of Capital 6.40% 6.40% 6.40% 6.40% 6.40% 6.88% 7.37% 7.85% 8.34% 8.83% 8.83%
Sales/Capital 2.59x 2.59x 2.59x 2.59x 2.59x 1.69x 1.69x 1.69x 1.69x 1.69x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)