General Mills Inc., FCFF calculation

US$ in thousands

12 months ended:	May 26, 2019	May 27, 2018	May 28, 2017	May 29, 2016	May 31, 2015	May 25, 2014
Net earnings attributable to General Mills	1,752,700)	2,131,000)	1,657,500)	1,697,400)	1,221,300)	1,824,400)
Net earnings attributable to redeemable and noncontrolling interests	33,500)	32,000)	43,600)	39,400)	38,100)	36,900)
Net noncash charges	1,028,300)	135,900)	844,200)	634,800)	1,068,700)	711,900)
Changes in current assets and liabilities, excluding the effects of acquisitions and divestitures	(7,500)	542,100)	(232,000)	258,200)	214,700)	(32,200)
Net cash provided by operating activities	2,807,000)	2,841,000)	2,313,300)	2,629,800)	2,542,800)	2,541,000)
Cash interest payments, net of tax¹	409,582)	196,196)	203,490)	200,312)	203,635)	192,296)
Capitalized interest, net of tax²	2,293)	2,985)	3,275)	5,282)	4,602)	3,268)
Purchases of land, buildings, and equipment	(537,600)	(622,700)	(684,400)	(729,300)	(712,400)	(663,500)
Proceeds from disposal of land, buildings, and equipment	14,300)	1,400)	4,200)	4,400)	11,000)	6,600)
Free cash flow to the firm (FCFF)	2,695,575)	2,418,881)	1,839,865)	2,110,494)	2,049,637)	2,079,664)

Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the General Mills Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	General Mills Inc. FCFF increased from 2017 to 2018 and from 2018 to 2019.

General Mills Inc., interest paid, net of tax calculation

US$ in thousands

12 months ended:	May 26, 2019	May 27, 2018	May 28, 2017	May 29, 2016	May 31, 2015	May 25, 2014
Effective Income Tax Rate (EITR)
EITR¹	18.10%	27.20%	28.80%	31.40%	33.30%	33.30%
Interest Paid, Net of Tax
Cash interest payments, before tax	500,100)	269,500)	285,800)	292,000)	305,300)	288,300)
Less: Cash interest payments, tax²	90,518)	73,304)	82,310)	91,688)	101,665)	96,004)
Cash interest payments, net of tax	409,582)	196,196)	203,490)	200,312)	203,635)	192,296)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	2,800)	4,100)	4,600)	7,700)	6,900)	4,900)
Less: Capitalized interest, tax³	507)	1,115)	1,325)	2,418)	2,298)	1,632)
Capitalized interest, net of tax	2,293)	2,985)	3,275)	5,282)	4,602)	3,268)

Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25).

¹ See details »

² 2019 Calculation
Cash interest payments, tax = Cash interest payments × EITR
= 500,100 × 18.10% = 90,518

³ 2019 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 2,800 × 18.10% = 507

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General Mills Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	46,517,358)
Free cash flow to the firm (FCFF)	2,695,575)
Valuation Ratio
EV/FCFF	17.26
Benchmarks
EV/FCFF, Competitors¹
Altria Group Inc.	11.55
Coca-Cola Co.	27.69
PepsiCo Inc.	28.14
Philip Morris International Inc.	27.06
EV/FCFF, Sector
Food, Beverage & Tobacco	25.93
EV/FCFF, Industry
Consumer Staples	34.01

Based on: 10-K (reporting date: 2019-05-26).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

General Mills Inc., historical EV/FCFF calculation, comparison to benchmarks

	May 26, 2019	May 27, 2018	May 28, 2017	May 29, 2016	May 31, 2015	May 25, 2014
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	45,968,119)	42,033,361)	40,796,369)	50,623,631)	43,168,268)	40,882,674)
Free cash flow to the firm (FCFF)²	2,695,575)	2,418,881)	1,839,865)	2,110,494)	2,049,637)	2,079,664)
Valuation Ratio
EV/FCFF³	17.05	17.38	22.17	23.99	21.06	19.66
Benchmarks
EV/FCFF, Competitors⁴
Altria Group Inc.	12.41	—	—	—	—	—
Coca-Cola Co.	28.08	—	—	—	—	—
PepsiCo Inc.	35.72	—	—	—	—	—
Philip Morris International Inc.	16.47	—	—	—	—	—
EV/FCFF, Sector
Food, Beverage & Tobacco	22.56	—	—	—	—	—
EV/FCFF, Industry
Consumer Staples	22.08	—	—	—	—	—

Based on: 10-K (reporting date: 2019-05-26), 10-K (reporting date: 2018-05-27), 10-K (reporting date: 2017-05-28), 10-K (reporting date: 2016-05-29), 10-K (reporting date: 2015-05-31), 10-K (reporting date: 2014-05-25).

¹ See details »

² See details »

³ 2019 Calculation
EV/FCFF = EV ÷ FCFF
= 45,968,119 ÷ 2,695,575 = 17.05

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	General Mills Inc. EV/FCFF ratio decreased from 2017 to 2018 and from 2018 to 2019.

General Mills Inc. (NYSE:GIS)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical