Packaged Foods · NYSE
Current Price
$14.23
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Conagra Brands, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Conagra Brands, Inc., together with its subsidiaries, operates as a consumer packaged goods food company in North America. The company operates in four segments: Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The Grocery & Snacks segment primarily offers shelf stable food products through various retail channels in the United States. The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels in the United States. The International segment offers food products in various temperature states through retail and foodservice channels outside of the United States. The Foodservice segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other foodservice establishments in the United States. The company sells its products under the Birds Eye, Duncan Hines, Healthy Choice, Marie Callender's, Reddi-wip, Slim Jim, Angie's BOOMCHICKAPOP, Duke's, Earth Balance, Gardein, and Frontera brands. The company was formerly known as ConAgra Foods, Inc. and changed its name to Conagra Brands, Inc. in November 2016. Conagra Brands, Inc. was founded in 1861 and is headquartered in Chicago, Illinois.
ROIC (TTM)
-2.4%
ROE (TTM)
-0.5%
FCF Yield
12.37%
Based on trailing twelve-month data, CAG shows a free cash flow per share of N/A and a ROIC of -2.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 12.37% are important context metrics when evaluating CAG's stock valuation relative to peers.
The intrinsic value of CAG depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether CAG is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $14.23. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Conagra Brands, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Packaged Foods industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CAG's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Conagra Brands, Inc., this means projecting how much free cash flow the Packaged Foods will produce over the next 5-10 years, then discounting those amounts to today's dollars. CAG's ROIC of -2.4% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CAG, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
