Food Confectioners · NYSE
Current Price
$83.44
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Kellanova with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for KKellanova, together with its subsidiaries, manufactures and markets snacks and convenience foods in North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa. Its principal products consist of snacks, such as crackers, savory snacks, toaster pastries, cereal bars, granola bars, and bites; and convenience foods, including ready-to-eat cereals, frozen waffles, veggie foods, and noodles; and crisps. The company offers its products under the Kellogg's, Cheez-It, Pringles, Austin, Parati, RXBAR, Eggo, Morningstar Farms, Bisco, Club, Luxe, Minueto, Special K, Toasteds, Town House, Zesta, Zoo Cartoon, Choco Krispis, Crunchy Nut, Kashi, Nutri-Grain, Squares, Zucaritas, Rice Krispies Treats, Sucrilhos, Pop-Tarts, K-Time, Sunibrite, Split Stix, LCMs, Coco Pops, Krave, Frosties, Rice Krispies Squares, Incogmeato, Veggitizers, Gardenburger, Trink, Carr's, Kellogg's Extra, Müsli, Fruit n Fibre, Kellogg's Crunchy Nut, Country Store, Smacks, Honey Bsss, Zimmy's, Toppas, Tresor, Froot Ring, Chocos, Chex, Guardian, Just Right, Sultana Bran, Rice Bubbles, Sustain, Choco Krispies, Melvin, Cornelius, Chocovore, Poperto, Pops the Bee, and Sammy the Seal brand names. It sells its products to retailers through direct sales forces, as well as brokers and distributors. The company was formerly known as Kellogg Company and changed its name to Kellanova in October 2023. Kellanova was founded in 1906 and is headquartered in Chicago, Illinois.
ROIC (TTM)
12.3%
ROE (TTM)
31.9%
FCF Yield
2.06%
Based on trailing twelve-month data, K shows a free cash flow per share of N/A and a ROIC of 12.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 2.06% are important context metrics when evaluating K's stock valuation relative to peers.
The intrinsic value of K 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 K is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $83.44. 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 Kellanova: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Food Confectioners industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting K'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 Kellanova, this means projecting how much free cash flow the Food Confectioners will produce over the next 5-10 years, then discounting those amounts to today's dollars. K's ROIC of 12.3% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For K, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
