Question

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


Related Solutions

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 / Book Equity. (Round to 3 decimals)
A company has $20 billion of sales and $1 billion of net income. Its total assets...
A company has $20 billion of sales and $1 billion of net income. Its total assets are $10 billion. The company’s total assets equal total invested capital, and its capital consists of half debt and half common equity. The firm’s interest rate is 5%, and its tax rate is 25%. What is its profit margin? What is its ROA? What is its ROE? What is its ROIC? Would this firm’s ROA increase if it used less leverage? (The size of...
Question 21 In 2012, MegaStores reported net income of $5.7 billion, net sales of $164.7 billion,...
Question 21 In 2012, MegaStores reported net income of $5.7 billion, net sales of $164.7 billion, and average total assets of $61.0 billion. What is MegaStores' asset turnover ratio? Question 21 options: A.   0.37 times B.    0.09 times C.    2.7 times D.   10.7 times Question 22 On January 2, 2012, York Corp. replaced its boiler with a more efficient one. The following information was available on that date: Purchase price of new boiler $170,000 Carrying amount of old boiler $10,000...
Formulating Financial Statements from Raw Data Assume the following is selected financial information from General Mills,...
Formulating Financial Statements from Raw Data Assume the following is selected financial information from General Mills, Inc., for its fiscal year ended May 25, 2014 ($ millions): Cash and Cash Equivalents $867.3 Net Cash from Operations 2,541.0 Sales 17,909.6 Stockholders' Equity 7,005.4 Cost of Goods Sold 11,539.8 Net Cash from Financing (1,824.1) Total Liabilities 16,140.3 Other Expenses, including income taxes 4,508.5 Noncash Assets 22,278.4 Net Cash from Investing (561.8) Net Income 1,861.3 Effect of exchange rate changes on cash (29.2)...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for its fiscal year ended May 29, 2016 ($ millions): *Cash from financing activites includes the effects of foreign exhange rate fluctuations. Revenue $16,563.1 Cost of goods sold $10,733.6 Cash from operating activities 2,629.8 Cash, ending year 763.7 Cash, beginning year 334.2 Total liabilities 16,405.2 Stockholders' equity 5,307.1 Cash from investing activities 93.4 Noncash assets 20,948.6 Total expenses (other than cost of goods sold) 4,092.7...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for its fiscal year ended May 25, 2003 ($ millions): Revenue $10,506 Cash from operating activities 1,631 Cash, beginning year 975 Stockholders' equity 4,475 Noncash assets 17,524 Cash from financing activities (885) Cost of goods sold 6,109 Total expenses (other than cost of goods sold) 3,480 Cash, ending year 703 Total liabilities 13,752 Cash from investing activities (1,018) Prepare the income statement, the balance sheet,...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for...
Formulating Financial Statements from Raw Data Following is selected financial information from General Mills, Inc., for its fiscal year ended May 29, 2011 ($ millions): Revenue $ 14,880.2 Cash from operating activities 1,526.8 Cash, beginning year 673.2 Stockholders' equity 6,612.2 Noncash assets 18,054.9 Cash from financing activities* (865.3) Cost of goods sold 8,926.7 Total expenses (other than cost of goods sold) 4,155.2 Cash, ending year 619.6 Total liabilities 12,062.3 Cash from investing activities (715.1) *Cash from financing activities includes the...
Nickle Corporation has related the following financial information: 2017 2016 Sales 930,000 900,000 Net operating income...
Nickle Corporation has related the following financial information: 2017 2016 Sales 930,000 900,000 Net operating income 232,500 200,000 Operating assets 300,000 320,000 Margin for 2017 is You must enter your answer in the following format: xx% Turnover for 2017 is You must enter your answer in the following format: x.x ROI for 2017 is You must enter your answer in the following format: xx%
STU Company has the following financial information for its most recent period. Free Cash Flows (Cash...
STU Company has the following financial information for its most recent period. Free Cash Flows (Cash flows to the firm) $325,000 Equity Cash Flows (Cash flows to equity) $230,000 Market value of debt $481,000 A search of comparable firms ("comps") indicated the following price multiples. Guideline Company Analysis Price / Earnings (P/E) Price / EBITDA Comp #1 9.3 6.7 Comp #2 9.1 7.8 Comp #3 7.2 7.0 Comp #4 9.1 8.2 Comp #5 10.0 7.7 Comp #6 6.8 6.9 Comp...
Following is selected financial information from General mills, Inc., for its fiscal yeah ended May 27,...
Following is selected financial information from General mills, Inc., for its fiscal yeah ended May 27, 2018($millions): Cash and cash equivalents...$ 399 Nat cash from operations...2,841 Sales...15,740.4 Stockholders' equity...6,492.4 costs of good sold...10,312.9 net cash from financing...5,445.5 total liabilities...24,131.6 other expenses, including income tax...3,264.5 noncash assest...30,225 net cash from investing...(8,685.4) net income...2,163.0 effect of exchange rate changes on cash...31.8 cash, beginning year...766.1 a. prepare income statement, balance sheet, and statement of cash flows for General Mills, Inc. b. What portion...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT