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JM Smucker Processed & Packaged Goods

JM Smucker Processed & Packaged Goods. Connor Myers. “With a name like Smucker’s , it has to be good”. Background. Founded in 1897 Headquartered in Orrville, Ohio Various Product lines including Jams, Peanut Butter, Crisco and Coffee. Steps in Market Multiples.

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JM Smucker Processed & Packaged Goods

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  1. JM SmuckerProcessed & Packaged Goods Connor Myers

  2. “With a name like Smucker’s, it has to be good”

  3. Background • Founded in 1897 • Headquartered in Orrville, Ohio • Various Product lines including Jams, Peanut Butter, Crisco and Coffee

  4. Steps in Market Multiples • Step 1: Select Performance Measures • Step 2: Select Comparable Companies • Step 3: Compute the Market Multiple • Step 4: Compute Target Company value • Step 5: Calculate Equity Value per Share

  5. Step 1: Summary Measures • Sales • Net Enterprise Assets (NEA) • Book Value of Equity • Enterprise Profit After Tax (EPAT) • Net Income

  6. Step 2: Comparable Companies (Processed & Packaged Goods) • Starbucks (SBUX) • Green Mountain Coffee (GMCR) • Mondelez (MDLZ)

  7. Steps 3-5: Sales Multiple Sales Price as of 1/24/2014: $97.97 As of year end 2012: $79.63

  8. Steps 3-5: NEA Multiple Sales Price as of 1/24/2014: $97.97 As of year end 2012: $79.63

  9. Steps 3-5: NEA Multiple Adjusted Sales Price as of 1/24/2014: $97.97 As of year end 2012: $79.63

  10. Steps 3-5: Book Value of Equity Multiple Sales Price as of 1/24/2014: $97.97 As of year end 2012: $79.63

  11. Steps 3-5: BV Multiple Adjusted Sales Price as of 1/24/2014: $97.97 As of year end 2012: $79.63

  12. Steps 3-5: EPAT Multiple Sales Price as of 1/24/2014: $97.97 As of year end 2012: $79.63

  13. Steps 3-5: Net Income Multiple Sales Price as of 1/24/2014: $97.97 As of year end 2012: $79.63

  14. Combined Estimates of Equity Value Per Share Sales Price as of 1/24/2014: $97.97 As of year end 2012: $79.63

  15. Combined Estimates Adjusted

  16. Recommendation • Hold JM Smucker Stock

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