DCF Studio

    GIS · NYQ · Consumer Defensive

    General Mills, Inc.

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 82.33

    Market price

    USD 34.75

    Implied upside

    +136.9%

    10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2026-05-31

    Value Per Share

    Perpetuity growth
    USD 82.33+136.9%
    Exit multiple
    USD 46.37+33.4%
    Market price
    USD 34.75

    Same forecast, different terminal treatment. Percentages vs price.

    Forecast Cashflows

    Reporting currency (USD). Outflows negative.

    0bn1bn2bnFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36
    Nominal FCFFDiscounted to todayUSD
    LineFY27FY28FY29FY30FY31FY32FY33FY34FY35FY36CAGR
    RevenueUSD 17.7bnUSD 17.7bnUSD 17.8bnUSD 18.0bnUSD 18.2bnUSD 18.4bnUSD 18.7bnUSD 19.1bnUSD 19.5bnUSD 20.0bn+1.4%
    EBITUSD 2.9bnUSD 2.9bnUSD 2.9bnUSD 3.0bnUSD 3.0bnUSD 3.0bnUSD 3.1bnUSD 3.1bnUSD 3.2bnUSD 3.3bn+1.4%
    NOPATUSD 2.3bnUSD 2.3bnUSD 2.3bnUSD 2.4bnUSD 2.4bnUSD 2.4bnUSD 2.5bnUSD 2.5bnUSD 2.6bnUSD 2.6bn+1.4%
    Add depreciation & amortisationUSD 498.8mUSD 500.1mUSD 502.9mUSD 507.1mUSD 512.7mUSD 519.8mUSD 528.4mUSD 538.7mUSD 550.7mUSD 564.4m+1.4%
    Less capital expenditureUSD -595.4mUSD -645.4mUSD -697.5mUSD -752.3mUSD -810.2mUSD -871.7mUSD -937.2mUSD -1.0bnUSD -1.1bnUSD -1.2bn+7.7%
    Capex, % of revenue3.4%3.6%3.9%4.2%4.5%4.7%5.0%5.3%5.5%5.8%-
    Less increase in working capitalUSD -12.0mUSD 775.2kUSD 1.6mUSD 2.4mUSD 3.2mUSD 4.1mUSD 5.0mUSD 5.9mUSD 6.9mUSD 7.9m-
    Free cashflow to firmUSD 2.2bnUSD 2.2bnUSD 2.2bnUSD 2.1bnUSD 2.1bnUSD 2.1bnUSD 2.1bnUSD 2.1bnUSD 2.0bnUSD 2.0bn-0.9%
    Discount factor0.97350.92250.87430.82850.78520.74410.70510.66830.63330.6001-
    Present valueUSD 2.2bnUSD 2.0bnUSD 1.9bnUSD 1.8bnUSD 1.6bnUSD 1.5bnUSD 1.5bnUSD 1.4bnUSD 1.3bnUSD 1.2bn-
    Present Value Of The ForecastUSD 16.4bn

    Discount Rate

    Source shown per component. All overridable above.

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.322Reported -0.012, pulled toward 1.0 (Blume)
    Cost of equity6.26%Risk-free + beta x equity risk premium
    Cost of debt5.67%Risk-free + 78bp, the spread for a A rating at 4.9x interest cover. Book interest / average debt was lower, at 3.9%.
    Market capitalisationUSD 18.6bn57.1% of capital
    Total debtUSD 13.9bn42.9% of capital, book value as a proxy
    Tax rate19.9%Effective, capped at statutory
    WACC5.52%E/V x Re + D/V x Rd x (1 - t)

    Terminal Value

    Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.

    Perpetuity growth at 2.50%

    Value per shareUSD 82.33

    72% of EV

    Forecast FCFF, final year
    USD 2.0bn
    Capex at depreciation, working capital in reinvestment
    USD 2.6bn
    Less reinvestment at g/ROIC (22.8% of NOPAT)
    USD -600.3m
    Capitalised
    USD 2.0bn
    ROIC (reported)
    11.0%
    Terminal value, undiscounted
    USD 69.0bn
    Terminal value, discounted
    USD 41.4bn
    Enterprise value
    USD 57.8bn
    Less net debt
    USD 13.5bn
    Equity value
    USD 44.3bn

    Exit at 9.5x EBITDA

    Value per shareUSD 46.37

    57% of EV

    Terminal value, undiscounted
    USD 36.8bn
    Terminal value, discounted
    USD 22.1bn
    Enterprise value
    USD 38.4bn
    Less net debt
    USD 13.5bn
    Equity value
    USD 24.9bn

    Spread between methods: 56%.

    Sensitivity

    Value per share (USD) by discount rate and long-run growth.

    Long-run growth
    Discount rate1.50%2.00%2.50%3.00%3.50%
    3.52%162.60202.20281.23513.0711509.49
    4.52%101.56113.90132.65164.15227.10
    5.52%70.8675.7082.3391.84106.35
    6.52%52.3754.3656.9860.5165.40
    7.52%40.0140.7341.6942.9844.73

    Outlined: this model. Green text: above today's price of 34.75. Shading: distance from this model's own value.

    Priced In

    What each input would have to be to justify the current price, one at a time.

    InputActualModelImplied
    Revenue growth, a year-2.9%0.8%-5.5%
    EBIT margin18.5%16.4%9.2%
    Discount rate-5.5%8.2%
    Download as Excel

    Live formulas, not pasted numbers - edit a driver and the workbook reprices.

    Yahoo Finance and RBA data. General information, not advice. Methodology.