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In: Finance

General Mills has the following financial information: Sales: 16.87 Billion Net income: 1.75 Billion Free Cash...

General Mills has the following financial information:
Sales: 16.87 Billion

Net income: 1.75 Billion

Free Cash Flows: 2.27 Billion

Total Book Equity: 7.37 Billion

Price Per Share: $60.15

Shares Outstanding: 0.6061 Billion

Benchmarks:
Price / Earnings: 19.52

Price / FCF: 12.93

Price / Sales: 2.01

Price / Book: 2.92

Given the provided information, calculate the comparable valuation price for General Mills based on Price / Sales. (Round to 3 decimals)

Solutions

Expert Solution

Answer :

Comparable valuation price = Benchmark Price/Sales Ratio * General Mill Sales per share

Comparable valuation price = 2.01 * (16.87/0.6061)

Comparable valuation price = 55.946


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