JM Smucker Processed & Packaged Goods

1. JM SmuckerProcessed & Packaged Goods Connor Myers

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

5. Background • Founded in 1897 in Orville, Ohio. • Full-Time Employees: 4,875 • Revenues of 5.72 Billion Dollars in 2013

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

7. Free Cash Flow

8. Residual Enterprise Income

9. Abnormal Growth Basics • Enterprise Value is using 3 figures for the estimate: • EPAT t-1 ($628,105) • Total Present Value of agr to the horizon ($10,470) • Total Present Value of continuing agr($92,768) Total = ($731,343) • Then all 3 of those values to get Total amount to be capitalized • Once you have that value you multiply by 1/rent (1/.0626) • That will lead you with enterprise value ($11,628,794)

10. Abnormal Growth

11. Quick Check

12. Conclusion/Issues Abnormal Growth Model provides most credibility to the estimate Jump directly from 6.5% growth to 2.5% growth