Name: General Mills Inc. (NYSE:GIS) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Current EV
Historical EV

General Mills Inc., current enterprise value calculation

Current share price (P)	$53.18
No. shares of common stock outstanding	604,816,813
US$ in thousands
Common equity (market value)¹	32,164,158)
Add: Noncontrolling interests (per books)	313,200)
Total equity	32,477,358)
Add: Current portion of long-term debt (per books)	1,396,500)
Add: Notes payable (per books)	1,468,700)
Add: Long-term debt, excluding current portion (per books)	11,624,800)
Total equity and debt	46,967,358)
Less: Cash and cash equivalents	450,000)
Enterprise value (EV)	46,517,358)

Based on: 10-K (reporting date: 2019-05-26).

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 53.18 × 604,816,813

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General Mills Inc., EV calculation

	May 26, 2019	May 27, 2018	May 28, 2017	May 29, 2016	May 31, 2015	May 25, 2014
Share price^1, 2	$52.52	$44.26	$54.97	$71.32	$56.59	$53.05
No. shares of common stock outstanding¹	601,959,611	593,367,848	577,099,679	597,020,906	598,737,719	612,508,457
US$ in thousands
Common equity (market value)³	31,614,919)	26,262,461)	31,723,169)	42,579,531)	33,882,568)	32,493,574)
Add: Noncontrolling interests (book value)	313,200)	351,300)	357,600)	376,900)	396,000)	470,600)
Total equity	31,928,119)	26,613,761)	32,080,769)	42,956,431)	34,278,568)	32,964,174)
Add: Current portion of long-term debt (book value)	1,396,500)	1,600,100)	604,700)	1,103,400)	1,000,400)	1,250,600)
Add: Notes payable (book value)	1,468,700)	1,549,800)	1,234,100)	269,800)	615,800)	1,111,700)
Add: Long-term debt, excluding current portion (book value)	11,624,800)	12,668,700)	7,642,900)	7,057,700)	7,607,700)	6,423,500)
Total equity and debt	46,418,119)	42,432,361)	41,562,469)	51,387,331)	43,502,468)	41,749,974)
Less: Cash and cash equivalents	450,000)	399,000)	766,100)	763,700)	334,200)	867,300)
Enterprise value (EV)	45,968,119)	42,033,361)	40,796,369)	50,623,631)	43,168,268)	40,882,674)

Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25).

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of General Mills Inc. Annual Report.

³ 2019 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 52.52 × 601,959,611

An analysis of the financial metrics between May 2014 and May 2019 reveals a period of significant volatility in valuation, characterized by a peak in 2016 followed by a sharp correction and a subsequent partial recovery.

Enterprise Value (EV) Trends: The enterprise value experienced a steady increase from US$ 40.88 billion in 2014 to a peak of US$ 50.62 billion in 2016. This growth was followed by a substantial contraction in 2017, where the value fell to US$ 40.80 billion. A gradual recovery trend is observed thereafter, with the EV rising to US$ 45.97 billion by May 2019.
Common Equity Market Value Volatility: The market value of common equity mirrored the trajectory of the enterprise value, peaking in 2016 at US$ 42.58 billion. A marked decline occurred over the next two years, reaching a low of US$ 26.26 billion in May 2018. By May 2019, the market value recovered to US$ 31.61 billion, returning to levels similar to those observed in 2014 and 2017.
Capital Structure and Debt Integration: Total equity and debt followed a similar pattern of expansion and contraction, peaking at US$ 51.39 billion in 2016. The close alignment between the total equity and debt figures and the enterprise value suggests that the net debt component remained relatively stable or proportional to the overall valuation throughout the period. The gap between total equity and debt and the enterprise value consistently remained narrow, indicating a consistent relationship between gross capital and the net value of the enterprise.
Equity Value Correlation: A strong positive correlation is observed between total equity (book value) and the market value of common equity. Both metrics peaked concurrently in 2016 and reached their lowest points in the 2017-2018 window, suggesting that changes in the company's underlying book value were closely reflected in market perceptions during this period.

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General Mills Inc. (NYSE:GIS)

Enterprise Value (EV)

Current Enterprise Value (EV)

Historical Enterprise Value (EV)