Paying users zone. Data is hidden behind hidden.

  • Get 1-month access to General Mills Inc. for $13.99, or

  • get full access to the entire website for at least 3 months from $49.99.


We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Apple Pay Google Pay
Verified by Visa MasterCard SecureCode American Express SafeKey

This is a one-time payment. There is no automatic renewal.

This company was transferred to the archive: financial data is no longer updated!

Microsoft Excel LibreOffice Calc

General Mills Inc. (NYSE:GIS)


Dividend Discount Model (DDM)

Intermediate level

In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Dividends are the cleanest and most straightforward measure of cash flow because these are clearly cash flows that go directly to the investor.


Intrinsic Stock Value (Valuation Summary)

General Mills Inc., dividends per share (DPS) forecast

US$

Microsoft Excel LibreOffice Calc
Year Value DPSt or Terminal value (TVt) Calculation Present value at hidden
0 DPS01
1 DPS1 = hidden × (1 + hidden)
2 DPS2 = hidden × (1 + hidden)
3 DPS3 = hidden × (1 + hidden)
4 DPS4 = hidden × (1 + hidden)
5 DPS5 = hidden × (1 + hidden)
5 Terminal value (TV5) = hidden × (1 + hidden) ÷ (hiddenhidden)
Intrinsic value of General Mills Inc.’s common stock (per share)
Current share price

Based on: 10-K (filing date: 2019-06-28).

1 DPS0 = Sum of the last year dividends per share of General Mills Inc.’s common stock. See details »

Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.


Required Rate of Return (r)

Microsoft Excel LibreOffice Calc
Assumptions
Rate of return on LT Treasury Composite1 RF
Expected rate of return on market portfolio2 E(RM)
Systematic risk of General Mills Inc.’s common stock βGIS
 
Required rate of return on General Mills Inc.’s common stock3 rGIS

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

2 See details »

3 rGIS = RF + βGIS [E(RM) – RF]
= hidden + hidden [hiddenhidden]
= hidden


Dividend Growth Rate (g)

Dividend growth rate (g) implied by PRAT model

General Mills Inc., PRAT model

Microsoft Excel LibreOffice Calc
Average May 26, 2019 May 27, 2018 May 28, 2017 May 29, 2016 May 31, 2015 May 25, 2014
Selected Financial Data (US$ in thousands)
Cash dividends declared
Net earnings attributable to General Mills
Net sales
Total assets
Stockholders’ equity
Financial Ratios
Retention rate1
Profit margin2
Asset turnover3
Financial leverage4
Averages
Retention rate
Profit margin
Asset turnover
Financial leverage
 
Dividend growth rate (g)5

Based on: 10-K (filing date: 2019-06-28), 10-K (filing date: 2018-06-29), 10-K (filing date: 2017-06-29), 10-K (filing date: 2016-06-30), 10-K (filing date: 2015-07-06), 10-K (filing date: 2014-07-03).

2019 Calculations

1 Retention rate = (Net earnings attributable to General Mills – Cash dividends declared) ÷ Net earnings attributable to General Mills
= (hiddenhidden) ÷ hidden = hidden

2 Profit margin = 100 × Net earnings attributable to General Mills ÷ Net sales
= 100 × hidden ÷ hidden = hidden

3 Asset turnover = Net sales ÷ Total assets
= hidden ÷ hidden = hidden

4 Financial leverage = Total assets ÷ Stockholders’ equity
= hidden ÷ hidden = hidden

5 g = Retention rate × Profit margin × Asset turnover × Financial leverage
= hidden × hidden × hidden × hidden = hidden


Dividend growth rate (g) implied by Gordon growth model

g = 100 × (P0 × rD0) ÷ (P0 + D0)
= 100 × (hidden × hiddenhidden) ÷ (hidden + hidden) = hidden

where:
P0 = current price of share of General Mills Inc.’s common stock
D0 = the last year dividends per share of General Mills Inc.’s common stock
r = required rate of return on General Mills Inc.’s common stock


Dividend growth rate (g) forecast

General Mills Inc., H-model

Microsoft Excel LibreOffice Calc
Year Value gt
1 g1
2 g2
3 g3
4 g4
5 and thereafter g5

where:
g1 is implied by PRAT model
g5 is implied by Gordon growth model
g2, g3 and g4 are calculated using linear interpoltion between g1 and g5

Calculations

g2 = g1 + (g5g1) × (2 – 1) ÷ (5 – 1)
= hidden + (hiddenhidden) × (2 – 1) ÷ (5 – 1) = hidden

g3 = g1 + (g5g1) × (3 – 1) ÷ (5 – 1)
= hidden + (hiddenhidden) × (3 – 1) ÷ (5 – 1) = hidden

g4 = g1 + (g5g1) × (4 – 1) ÷ (5 – 1)
= hidden + (hiddenhidden) × (4 – 1) ÷ (5 – 1) = hidden