Not So Special K: Levered Returns Interactive Model Included

Article Overview Based on my assumptions in the LR cash flow model, I’m concluding a fair value estimate of approximately $53 per share (20% discount to Kellogg’s July 9th closing price). Health conscious consumers question Kellogg’s brands. Struggles mount as Kellogg falters in Cornflakes TV advertisement. Project K to weigh on Kellogg’s cash flows. Levered […]

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Not So Special K: Levered Returns Interactive Model Included

Article Overview Based on my assumptions in the LR cash flow model, I’m concluding a fair value estimate of approximately $53 per share (20% discount to Kellogg’s July 9th closing price). Health conscious consumers question Kellogg’s brands. Struggles mount as Kellogg falters in Cornflakes TV advertisement. Project K to weigh on Kellogg’s cash flows. Levered […]

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How to Buy $3,000 of Costco or Panera: PE Trade Secrets that You Can Use

LBO structure used by private equity firms provides an interesting framework for margin investing Panera and Costco represent two viable investment opportunities for applying this PE trade secret Includes illustration of incremental return potential using Levered Returns interactive models Private equity firms often buy companies outright, and then use debt to improve returns on their […]

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Display Caution Before Investing in Colgate-Palmolive: LR Interactive Valuation Model Included

Article Overview Applying my assumptions into Levered Return’s DCF model implies a fair value of approximately $65 (6% discount to July 8th closing price of $69.50). Try your own assumptions. Even Levered Return’s Gordon Growth model implies a fair value of approximately $60 (14% discount to Colgate-Palmolive’s July 8th closing price). Premium trading multiples compared […]

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Will FedEx Deliver Returns for Shareholders? LR Interactive Model Included

FedEx’s operating segments sheds light on important growth and profitability drivers Currently trading at a steep discount to United Parcel Service on an earnings multiple basis My assumptions in the Levered Returns models yield a fair value per share of $183, well above July 6th price of $153.61. FedEx Corporation (FDX) is best known for […]

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Have Clorox Ride The Pine: Editable Valuation Model Included

Article Overview Based on my assumptions in the Levered Returns cash flow model, I’m concluding a fair value estimate of $76.96 – a 16.3% discount to Clorox’s latest trading price (July 6th) Clorox’s stable business model delivers consistent cash flows but trading multiples are rich. History of steady financial performance but Clorox under-performs public peers. […]

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Market Check On General Mills: Levered Returns Editable Model Included

Article Overview Using Levered Returns cash flow model assumptions, I’m concluding a fair value estimate of approximately $51 – a 4% discount to General Mill’s latest trading price as of July 6th Valuation multiples trade at a discount to underperforming competitor Kellogg General Mills keeps pace with health conscious consumers Consumers beginning to prefer snacking […]

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Can Kraft Keep Scoring on Singles? My LR Model Suggests Otherwise

Kraft continues to maintain strong brand recognition but failure to innovate new products and categories has dragged down growth and profitability Weakness in key revenue segments such as Beverages, approximately 15% of sales, and Refrigerated Meals, 18% of sales suggests current valuation is expensive Based on my Levered Returns model, an entry point of $45 […]

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Hidden Value In Kimberly-Clark: Interactive Valuation Model

Summary Strong historical dividend growth for Kimberly-Clark, combined with no imminent threats, makes this tissue maker a strong buy at these levels. Levered Returns’ Gordon Growth Model provides the appropriate valuation check for Kimberly-Clark, implying a fair value of approximately $133. Applying my assumptions, Kimberly-Clark is 20.0% undervalued based on the July 1st close price […]

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