General Mills DCF Stock Analysis

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 3.78%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 3.5%

Historical Data

Revenue growth in the last 10 years (CAGR): 1.64%

Earnings growth in the last 10 years (CAGR): 3.06%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): -3.27%

Future Assumptions

End of Year FCF growth: 2%

Growth until end of 2026: 3%

Growth until end of 2034: 3%

Perpetual growth: 2%

Net Debt: 14.933B

Outstanding Stock Options Present Value Assumption: ~$0 (weighted average strike price is higher than the current stock price)

Restricted Stock Units + Performance Stock Units Present Value Assumption: $0.203B

Stock Valuation based on these assumptions: $41

Last update 09/16/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in General Mills (GIS) and I don’t plan to add a position in the coming days.