The files that accompany this book contains information for Kellogg. Use this information and the template of
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The files that accompany this book contains information for Kellogg. Use this information and the template of section 4.1 to value Kellogg.
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B C D E I F BASIC CASH FLOW VALUATION TEMPLATE A 2 Current free cash flow (FCF) 3 Growth rate of FCF, years 1-5 4 Long-term FCF growth rate 5 Weighted average cost of capital (WACC) 1,000 8.00% 5.00% 11.00% 6. 7 Year 8 Future FCFS 9 Terminal value 10 Total 1,080 1,166| 1,260 1,469 <-- =F8"(1+$B$3) 25,713 <-- =G8"(1+B4)/(B5-B4) 27,183 <-- =G8+G9 1,360 1,080 1,166 1,260 1,360 11 12 Enterprise value 13 Add back initial cash 14 Subtract out debt 15 Equity value 16 Per share (1,000 shares) 20,933 <- =NPV(B5,C10:G10)*(1+B5)^0.5 2,000 <-- From current balance sheet 10,000 <-- From current balance sheet 12,933 <- =B12+B13-B14 12.93 <-- =B15/1000
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