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JM Smucker Processed & Packaged Goods. Connor Myers. “With a name like Smucker’s , it has to be good”. Comparable Companies (Processed & Packaged Goods). Starbucks (SBUX) Green Mountain Coffee (GMCR) Mondelez (MDLZ). RNEA of Comparables. Breaking Apart RNEA.
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JM SmuckerProcessed & Packaged Goods Connor Myers
Comparable Companies (Processed & Packaged Goods) • Starbucks (SBUX) • Green Mountain Coffee (GMCR) • Mondelez (MDLZ)
Breaking Apart RNEA EPAT Sales RNEA = ______ * _________ Sales avg(NEA) $603,042 5,897,700 RNEA =________ * __________ 5,897,700($7,028,154 + $7,114,737)/2 10.23% * .834 RNEA = 8.53%
Parsimonious - Revenues Assume: 6.5%
Parsimonious – EPM Assume: 10%
EATO of Comparables Assume: .80
Assumptions for JM Smucker Sales growth rate: 6.5% Enterprise Profit Margin (EPM): 10.0% (EPAT / Sales) Enterprise Asset Turnover (EATO): .80 (Sales / NEA)