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Executive Overview
General Mills (NYSE:GIS), our company, is a global consumer foods company. We develop distinctive value-added food products and market with our unique brand names. We work continuously to improve our established products and to create new products that meet our customers’ potential needs and preferences. Our company has $14.88 billion in sales last year. Our sales has grown substantially throughout the years due in large part to our popular brand names, this however is only part of the reason that we has been so successful. We markets global brands such as Green Giant, Old El Paso, Häagen-Dazs, Yoplait, Cheerios, Betty Crocker, Bisquick, Progresso and many others with competitive prices. The average U.S. shopper purchases at least one of our products every time they visit the grocery store.
In this business model for our company, we include the important inputs and assumptions for the Balance Sheet (historical and future data), Income statements and other estimated model – WACC, Terminal Value, Enterprise Value, Stock Price, etc. After estimating enterprise values in the future, we can find that our company is undervalued. Stock holders are supposed to add holdings of shares and gain more equity.
Analysis of the Model
All the statistics used in this model can be found in Google Finance, Yahoo Finance and Bloomberg. In calculating the ratios and forecast financials for our company, some trends are difficult to estimate because the data online is not all included. Once we had the ratios calculated, we can find trends and used them to forecast out the balance sheet, Income statement and cash flow statement for the next five years, which would bring us to 2016.
Revenue Growth – According to the Sheet FSM-Input, we can find the percent growth % for the last four years are 9.73%, 7.61%, 0.72%, 0.57%. Because it changes a lot in the five years and