General Mills Inc. (GIS)

Enterprise Value to FCFF (EV/FCFF)

Difficulty: Intermediate

General Mills Inc., FCFF calculation

USD $ in thousands

	12 months ended	May 27, 2018	May 28, 2017	May 29, 2016	May 31, 2015	May 25, 2014	May 26, 2013
	Net earnings attributable to General Mills
	Net earnings attributable to redeemable and noncontrolling interests
	Net noncash charges
	Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures
	Net cash provided by operating activities
	Cash interest payments, net of tax¹
	Capitalized interest, net of tax²
	Purchases of land, buildings, and equipment
	Proceeds from disposal of land, buildings, and equipment
	Free cash flow to the firm (FCFF)

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the General Mills Inc.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	General Mills Inc.'s FCFF declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

General Mills Inc., interest paid, net of tax calculation

USD $ in thousands

12 months ended	May 27, 2018	May 28, 2017	May 29, 2016	May 31, 2015	May 25, 2014	May 26, 2013
Effective Income Tax Rate (EITR)

EITR¹	%	%	%	%	%	%
Interest Paid, Net of Tax
Cash interest payments, before tax
Less: Cash interest payments, tax²
Cash interest payments, net of tax
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax
Less: Capitalized interest, tax³
Capitalized interest, net of tax

2018 Calculations

² Cash interest payments, tax = Cash interest payments × EITR
= hidden × hidden % = hidden

³ Capitalized interest, tax = Capitalized interest × EITR
= hidden × hidden % = hidden

General Mills Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (USD $ in thousands)
Enterprise value (EV)
Free cash flow to the firm (FCFF)
Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors
Kraft Heinz Co.
Mondelēz International Inc.
EV/FCFF, Sector
Food Producers
EV/FCFF, Industry
Consumer Goods

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

General Mills Inc., historical EV/FCFF calculation, comparison to benchmarks

		May 27, 2018	May 28, 2017	May 29, 2016	May 31, 2015	May 25, 2014	May 26, 2013
	Selected Financial Data (USD $ in thousands)
	Enterprise value (EV)¹
	Free cash flow to the firm (FCFF)²
	Ratio
	EV/FCFF³
	Benchmarks
	EV/FCFF, Competitors
	Kraft Heinz Co.
	Mondelēz International Inc.
	EV/FCFF, Sector
	Food Producers
	EV/FCFF, Industry
	Consumer Goods

2018 Calculations

³ EV/FCFF = EV ÷ FCFF
= hidden ÷ hidden = hidden

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	General Mills Inc.'s EV/FCFF ratio declined from 2016 to 2017 and from 2017 to 2018.

	General Mills Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality