Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Campbell Soup Company's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -4.6% to 0.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 23, DPO 73, DIO 72). At a 5.6% WACC with mid-year discounting, the terminal value (76% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.2x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $46.17 per share, suggesting CPB is undervalued by 120.9% at the current price of $20.90.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 1,147 | 1,147 | 1,155 | 1,160 | 1,166 | 1,195 |
| (−) Net Interest | 247 | 248 | 249 | 250 | 252 | 258 |
| (+) D&A | 366 | 387 | 416 | 419 | 393 | 402 |
| EBITDA | 1,760 | 1,782 | 1,820 | 1,829 | 1,810 | 1,855 |
| (−) Tax | 276 | 276 | 278 | 279 | 280 | — |
| (−) CapEx | 382 | 383 | 385 | 387 | 389 | — |
| (−) ΔWC | -77 | 0 | 4 | 3 | 3 | — |
| Free Cash Flow (FCF) | 1,179 | 1,123 | 1,153 | 1,160 | 1,137 | — |
| Peers' EBITDA Multiple | 11.2x | |||||
| Terminal Value | 20,832 | |||||
| WACC / Discount Rate | 5.57% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 1,147 | 1,036 | 1,007 | 960 | 891 | 15,888 |
| Enterprise Value | 20,928 | |||||
| Projection Period | 5,040 | 24.1% | ||||
| Terminal Value | 15,888 | 75.9% | ||||
| (−) Current Net Debt | 7,080 | |||||
| Equity Value | 13,848 | |||||
| (÷) Outstanding Shares | 300M | |||||
| Fair Price | $46 | +120.9% | ||||
| WACC \ EV/EBITDA Exit Multiple | 7.2x | 9.2x | 11.2x | 13.2x | 15.2x |
|---|---|---|---|---|---|
| 3.6% | $32 | $42 | $52 | $63 | $73 |
| 4.6% | $29 | $39 | $49 | $59 | $69 |
| 5.6% | $27 | $37 | $46 | $56 | $65 |
| 6.6% | $25 | $34 | $43 | $52 | $61 |
| 7.6% | $24 | $32 | $41 | $49 | $58 |
Current price: $20.90. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.