Campbell Soup Company (CPB) Stock Valuation — DCF Analysis
Packaged Foods · NASDAQ
Current Price
$22.81
Intrinsic Value
$20.41
-11.7% margin of safety
COMPETITIVE MOAT
↑Brand Recognition & Loyalty
Campbell's iconic brands like Campbell's Soup and Goldfish have cultivated deep consumer trust and loyalty over generations. This strong brand equity allows for premium pricing and repeat purchases.
↑Distribution Network
An extensive and established distribution network across numerous retail channels provides significant shelf space and accessibility. This makes it difficult for smaller competitors to gain comparable market penetration.
↑Product Innovation & Partnerships
Strategic collaborations, like the recent Buffalo Wild Wings Chunky soup, demonstrate an ability to innovate and tap into new consumer trends. This helps maintain relevance and attract new customer segments.
INVESTMENT RISKS
↓Commodity Price Volatility
Rising input costs, such as tomato prices, can directly impact profitability. The company's ability to pass these costs onto consumers is limited by competitive pressures.
↓Weakness in Key Segments
Deterioration in performance within significant segments like Snacks and Fresh Bakery, as indicated by expected sales declines, poses a threat to overall revenue growth and market share.
↓Product Quality Concerns
Serious allegations of product contamination, such as the SpaghettiOs worm incident, can severely damage brand reputation and lead to costly legal battles and lost sales.
Base case
CPB base case valuation
A base case discounted cash flow model for CPB estimates an intrinsic value of about $20.41 per share, against a current price of $22.81. The model assumes -6.2% annual free cash flow growth, a 10.0% discount rate, and a 8x exit multiple.
Intrinsic Value
$20.41
Margin of safety
-11.7%
Expected annual return
-2.2%
Base case assumptions: -6.2% annual growth, 10.0% discount rate, 8x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CPB valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Campbell Soup Company respond.
Open DCF Calculator for CPBCompany Overview
Campbell Soup Company (CPB) is a leading international producer and marketer of a wide variety of food and beverage products. The enterprise conducts its business through two main operational divisions: Meals & Beverages and Snacks. The Meals & Beverages segment serves both retail and food service industries throughout the United States and Canada. Its extensive product range includes classic Campbell's condensed and ready-to-enjoy soups; Swanson brand broths and stocks; Pacific Foods' line of broths, soups, and non-dairy beverages; Prego pasta sauces; Pace brand Mexican sauces; Campbell's gravies, pasta dishes, beans, and dinner sauces; Swanson canned poultry; Plum organic baby food and snacks; V8 juices and drinks; and Campbell's tomato juice. The Snacks division primarily targets the retail sector, with a significant presence in Latin America. This segment offers a diverse array of treats, such as Pepperidge Farm's selection of cookies, crackers, fresh bakery items, and frozen goods, including Milano cookies and Goldfish crackers. Other notable brands within this category are Snyder's of Hanover pretzels, Lance sandwich crackers, Cape Cod and Kettle Brand potato chips, Late July snacks, Snack Factory Pretzel Crisps, Pop Secret popcorn, Emerald nuts, and numerous other snacking options. Campbell Soup Company employs a comprehensive distribution strategy, selling its merchandise across an extensive network that encompasses major retail food chains, mass discounters and merchandisers, club stores, convenience stores, drug stores, and dollar stores. Additionally, products are available via e-commerce platforms, various other retail, commercial, and non-commercial establishments, and a system of independent contractor distributors. Established in 1869, the company's corporate headquarters are situated in Camden, New Jersey.
Financial Metrics — CPB Stock Valuation Data
Revenue/Share (TTM)
$33.32
FCF/Share (TTM)
$3.02
ROIC (TTM)
6.7%
ROE (TTM)
15.3%
P/FCF
7.6x
EV/EBITDA
9.4x
FCF Yield
13.22%
Debt/Equity
1.74x
Based on trailing twelve-month data, CPB shows a free cash flow per share of $3.02 and a ROIC of 6.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 7.6x and FCF yield of 13.22% are important context metrics when evaluating CPB's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of CPB?
Campbell Soup Company currently generates $3.02 in free cash flow per share. At the current price of $22.81, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is CPB undervalued?
CPB trades at a P/FCF ratio of 7.6x with a free cash flow yield of 13.22%. This relatively low P/FCF may suggest the stock is attractively priced relative to its cash generation. However, whether CPB is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value CPB stock using DCF?
To perform a DCF valuation on Campbell Soup Company: (1) Start with the trailing free cash flow per share ($3.02) 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 CPB's risk profile — with a debt-to-equity of 1.74x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to CPB?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Campbell Soup Company, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Packaged Foods trends, then discounting those amounts to today's dollars. CPB's ROIC of 6.7% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect CPB stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CPB, with a debt-to-equity ratio of 1.74x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 9.4x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See CPB PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Consumer Defensive valuationsDCF and P/E value CPB with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.