General Mills, Inc. (GIS) Intrinsic Value & DCF Valuation
Packaged Foods · NYSE
Current Price
$34.51
Intrinsic Value
$26.71
-29.2% margin of safety
What Is General Mills, Inc.'s Intrinsic Value?
As of 2026-06-12, our base-case DCF model estimates the intrinsic value of General Mills, Inc. (GIS) at $26.71 per share, compared with a market price of $34.51, a margin of safety of -29.2%. The base case assumes -4.8% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $20.44 to $34.11. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How our DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is General Mills, Inc. (GIS) Undervalued?
At the current price of $34.51, GIS trades above our base-case intrinsic value estimate by a meaningful margin. By this model the stock looks expensive, though faster growth than we assume would change the picture.
COMPETITIVE MOAT
↑Brand Strength and Loyalty
General Mills possesses a portfolio of well-established brands like Cheerios and Betty Crocker, fostering strong consumer recognition and loyalty. This allows for premium pricing and consistent demand.
↑Distribution Network Scale
The company benefits from an extensive and efficient distribution network across numerous markets. This scale provides a significant advantage in reaching consumers and securing shelf space.
↑Product Innovation Pipeline
General Mills demonstrates a capacity for product innovation and adaptation to evolving consumer preferences. This includes developing healthier options and expanding into new categories.
INVESTMENT RISKS
↓China Market Divestiture
The sale of Häagen-Dazs shops in China signals a strategic shift, potentially indicating challenges or a desire to focus resources elsewhere. This could impact future growth in that region.
↓Intense Competition
The packaged foods industry is highly competitive, with numerous players vying for market share. This can lead to price pressures and necessitate continuous marketing investment.
↓Changing Consumer Tastes
Shifting consumer preferences towards healthier, less processed foods pose a risk. General Mills must continually adapt its product offerings to meet these evolving demands.
Base case
GIS base case valuation
Intrinsic Value
$26.71
Margin of safety
-29.2%
Expected annual return
-5.0%
Base case assumptions: -4.8% annual growth, 10.0% discount rate, 11x 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 GIS valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for General Mills, Inc. respond.
Open DCF Calculator for GISCompany Overview
General Mills, Inc. functions as a prominent global producer and vendor of well-known consumer food brands. The company structures its widespread operations into five main divisions: North American retail, convenience stores and foodservice providers, Europe and Australia, Asia and Latin America, and a dedicated pet segment. Their broad catalog of products features a diverse range of items for consumers. This includes breakfast cereals, chilled yogurts, various soups, and ready-to-prepare meal kits. The offering also extends to refrigerated and frozen dough items, baking and dessert mixes, flours for culinary use, frozen pizzas and pizza snacks, along with an assortment of snack bars, fruit snacks, savory and grain snacks, and ice cream. For health-conscious consumers, they provide nutrition bars and wellness beverages, in addition to organic frozen and shelf-stable vegetables. Beyond direct consumer sales, General Mills supplies both branded and unbranded food goods to the North American foodservice sector and commercial bakeries. Furthermore, they are a significant participant in the pet food industry, manufacturing a variety of dog and cat food products. The company markets its merchandise under an extensive collection of trademarks, such as: Annie's, Betty Crocker, Bisquick, Blue Buffalo, Blue Basics, Blue Freedom, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, EPIC, Fiber One, Food Should Taste Good, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto's, Go-Gurt, Gold Medal, Golden Grahams, Häagen-Dazs, Helpers, Jus-Rol, Kitano, Kix, Lärabar, Latina, Liberté, Lucky Charms, Muir Glen, Nature Valley, Oatmeal Crisp, Old El Paso, Oui, Pillsbury, Progresso, Raisin Nut Bran, Total, Totino's, Trix, Wanchai Ferry, Wheaties, Wilderness, Yoki, and Yoplait. General Mills distributes its products through a vast network, utilizing both direct sales and arrangements with brokers and distributors. Their reach encompasses a wide array of sales points, including traditional grocery stores, large-scale mass merchandisers, membership clubs, natural food retailers, online marketplaces, various commercial and non-commercial foodservice distributors and operators, restaurants, convenience stores, specialized pet stores, as well as drug, dollar, and discount retail chains. Complementing its extensive business, the corporation also oversees 466 leased and 392 franchised ice cream parlors. General Mills, Inc., established in 1866, maintains its corporate headquarters in Minneapolis, Minnesota.
Financial Metrics — GIS Stock Valuation Data
Revenue/Share (TTM)
$33.94
FCF/Share (TTM)
$3.05
ROIC (TTM)
9.7%
ROE (TTM)
23.7%
P/FCF
11.2x
EV/EBITDA
10.3x
FCF Yield
8.96%
Debt/Equity
1.49x
Based on trailing twelve-month data, GIS shows a free cash flow per share of $3.05 and a ROIC of 9.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 11.2x and FCF yield of 8.96% are important context metrics when evaluating GIS's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of GIS?
General Mills, Inc. currently generates $3.05 in free cash flow per share. At the current price of $34.51, 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 GIS undervalued?
GIS trades at a P/FCF ratio of 11.2x with a free cash flow yield of 8.96%. This relatively low P/FCF may suggest the stock is attractively priced relative to its cash generation. However, whether GIS 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 GIS stock using DCF?
To perform a DCF valuation on General Mills, Inc.: (1) Start with the trailing free cash flow per share ($3.05) 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 GIS's risk profile — with a debt-to-equity of 1.49x, 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 GIS?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For General Mills, Inc., 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. GIS's ROIC of 9.7% shows moderate capital returns.
How does WACC affect GIS stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For GIS, with a debt-to-equity ratio of 1.49x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 10.3x, 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 GIS 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 GIS 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.