KHC — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($24.61)
DCF	$25.88	+5.1%
Graham Number	—	—
Reverse DCF	—	implied g: 4.5%
DDM	$32.96	+33.9%
EV/EBITDA	$24.72	+0.4%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.78B

Near-term growth (yrs 1–5)(%)Rev: -3.4% / EPS: -69.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 4.27%

Computed WACC: 4.27%

Cost of equity (Re)4.56%(Rf 4.30% + β 0.05 × ERP 5.50%)

Cost of debt (Rd)4.92%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)57.23%

Debt weight (D/V)42.77%

Results

Intrinsic Value / share$137.28

Current Price$24.61

Upside / Downside+457.8%

Net Debt (used)$18.10B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-3.0%	1.0%	5.0%	9.0%	13.0%
7.0%	$26.23	$34.63	$44.39	$55.70	$68.72
8.0%	$18.84	$25.60	$33.45	$42.52	$52.96
9.0%	$13.72	$19.35	$25.88	$33.41	$42.07
10.0%	$9.96	$14.76	$20.32	$26.73	$34.09
11.0%	$7.09	$11.26	$16.08	$21.63	$28.00

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $-4.93

Book Value / share($)Yahoo: $35.19

Results

Graham Number requires positive EPS and positive Book Value per share. EPS is zero or negative.

Graham Number—

Current Price$24.61

Margin of Safety—

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 4.27%

Terminal growth rate(%)

Computed WACC: 4.27%

Cost of equity (Re)4.56%(Rf 4.30% + β 0.05 × ERP 5.50%)

Cost of debt (Rd)4.92%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)57.23%

Debt weight (D/V)42.77%

Results

Current Price$24.61

Implied Near-term FCF Growth-13.8%

Historical Revenue Growth-3.4%

Historical Earnings Growth-69.2%

Base FCF (TTM)$2.78B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $1.60

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$32.96

Current Price$24.61

Upside / Downside+33.9%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $5.73B

Target EV/EBITDA multipleCurrent: 8.3×

Net Debt($B)Default: $18.10B

Results

Implied Equity Value / share$24.72

Current Price$24.61

Upside / Downside+0.4%

Implied EV$47.36B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$8.10B	$13.10B	$18.10B	$23.10B	$28.10B
4.3x	$13.81	$9.59	$5.37	$1.14	$-3.08
6.3x	$23.49	$19.27	$15.04	$10.82	$6.59
8.3x	$33.17	$28.94	$24.72	$20.49	$16.27
10.3x	$42.84	$38.62	$34.39	$30.17	$25.95
12.3x	$52.52	$48.29	$44.07	$39.85	$35.62

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