Mondelez International, Inc. (MDLZ) Intrinsic Value & DCF Valuation
Food Confectioners · NASDAQ
Current Price
$62.99
Intrinsic Value
$64.81
+2.8% margin of safety
What Is Mondelez International, Inc.'s Intrinsic Value?
As of 2026-06-12, our base-case DCF model estimates the intrinsic value of Mondelez International, Inc. (MDLZ) at $64.81 per share, compared with a market price of $62.99, a margin of safety of +2.8%. The base case assumes 8.1% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $54.34 to $76.71. 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 Mondelez International, Inc. (MDLZ) Undervalued?
At $62.99, MDLZ trades about 2.8% below our base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety we require before calling a stock undervalued.
COMPETITIVE MOAT
↑Iconic Brand Portfolio
MDLZ owns globally recognized brands like OREO and SOUR PATCH KIDS. These brands foster strong consumer loyalty and command premium pricing power.
↑Global Distribution Network
An extensive and efficient global supply chain allows MDLZ to reach diverse markets effectively. This scale creates barriers to entry for smaller competitors.
↑Product Innovation & Line Extensions
Continuous introduction of new products and line extensions, like SOUR PATCH KIDS BESTIES and OREO CAKESTERS, keeps brands relevant. This drives repeat purchases and attracts new consumers.
INVESTMENT RISKS
↓Commodity Price Volatility
Fluctuations in the cost of key ingredients like sugar and cocoa can impact profit margins. MDLZ has limited ability to fully pass these costs to consumers.
↓Intense Competition
The confectionery and snack market is highly fragmented and competitive. New entrants and private label brands can erode market share.
↓Changing Consumer Preferences
Shifting consumer tastes towards healthier options or away from sugary snacks pose a long-term threat. Adapting product portfolios requires significant investment.
Base case
MDLZ base case valuation
Intrinsic Value
$64.81
Margin of safety
+2.8%
Expected annual return
+0.6%
Base case assumptions: 8.1% annual growth, 10.0% discount rate, 30x 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 MDLZ valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Mondelez International, Inc. respond.
Open DCF Calculator for MDLZCompany Overview
Mondelez International, Inc. operates as a prominent global entity in the snack and beverage sector, focusing on the production, promotion, and distribution of a wide array of food items. Its extensive reach spans multiple continents, including North America, Latin America, Asia, the Middle East, Africa, and Europe. The company's diverse product portfolio encompasses biscuits (such as cookies, crackers, and various savory snacks), chocolates, chewing gums, candies, as well as selection of cheese and general grocery products, and powdered beverage mixes. Among its well-recognized brands are Cadbury, Milka, and Toblerone chocolates; Oreo, belVita, and LU biscuits; Halls candies; Trident chewing gum; and Tang powdered beverages. Mondelez distributes its offerings through a comprehensive network of retail outlets, catering to a broad spectrum of clients including large supermarket chains, wholesalers, supercenters, club stores, mass merchandisers, convenience stores, petrol stations, pharmacies, discount stores, and other food retailers. This complex distribution system leverages direct store delivery, proprietary and external warehousing solutions, third-party distributors, independent sales agents, and digital e-commerce platforms. Established in 2000, the company was initially known as Kraft Foods Inc. before officially changing its name to Mondelez International, Inc. in October 2012. Its corporate headquarters are situated in Chicago, Illinois.
Financial Metrics — MDLZ Stock Valuation Data
Revenue/Share (TTM)
$30.49
FCF/Share (TTM)
$2.00
ROIC (TTM)
5.6%
ROE (TTM)
10.0%
P/FCF
31.4x
EV/EBITDA
19.7x
FCF Yield
3.18%
Debt/Equity
0.84x
Based on trailing twelve-month data, MDLZ shows a free cash flow per share of $2.00 and a ROIC of 5.6%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 31.4x and FCF yield of 3.18% are important context metrics when evaluating MDLZ's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of MDLZ?
Mondelez International, Inc. currently generates $2.00 in free cash flow per share. At the current price of $62.99, 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 MDLZ undervalued?
MDLZ trades at a P/FCF ratio of 31.4x with a free cash flow yield of 3.18%. This P/FCF is in a moderate range. However, whether MDLZ 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 MDLZ stock using DCF?
To perform a DCF valuation on Mondelez International, Inc.: (1) Start with the trailing free cash flow per share ($2.00) 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 MDLZ's risk profile — with a debt-to-equity of 0.84x, 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 MDLZ?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Mondelez International, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Food Confectioners trends, then discounting those amounts to today's dollars. MDLZ's ROIC of 5.6% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect MDLZ stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MDLZ, with a debt-to-equity ratio of 0.84x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 19.7x, 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 MDLZ 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 MDLZ 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.