MKC
McCormick & Company, Incorporated (MKC)
Last Price$84.72.6%
Market Cap$22.5B
DCF value
$65.1
Overvalued (DCF value)
(23.2%)
Discount Rate
6.6%
Long-Term Growth Rate
2.0%
Stock quality
6/10
Good

MKC DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Nov'20 ActualNov'21 ActualNov'22 ActualNov'23 ActualNov'24 ActualNov'25 EstimateNov'26 EstimateNov'27 EstimateNov'28 EstimateNov'29 EstimateNov'30 EstimateNov'31 EstimateNov'32 EstimateNov'33 EstimateNov'34 EstimateNov'35 Terminal
% growth
5,601.3
4.7%
6,317.9
12.8%
6,350.5
0.5%
6,662.2
4.9%
6,723.7
0.9%
6,855.4
2.0%
7,066.1
3.1%
7,420.8
5.0%
7,602.0
2.4%
7,782.9
2.4%
7,963.1
2.3%
8,142.5
2.3%
8,320.8
2.2%
8,497.7
2.1%
8,673.0
2.1%
8,846.5
2.0%
999.5
17.8%
1,015.1
16.1%
863.6
13.6%
963.0
14.5%
1,060.3
15.8%
1,151.4
16.8%
1,186.8
16.8%
1,246.4
16.8%
1,276.8
16.8%
1,307.2
16.8%
1,337.4
16.8%
1,367.6
16.8%
1,397.5
16.8%
1,427.2
16.8%
1,456.7
16.8%
1,485.8
16.8%
NOPAT
% effective tax rate
801.2
14.3%
796.7
12.6%
684.5
10.8%
752.6
11.3%
843.1
12.5%
915.5
13.4%
943.7
13.4%
991.1
13.4%
1,015.3
13.4%
1,039.4
13.4%
1,063.5
13.4%
1,087.4
13.4%
1,111.2
13.4%
1,134.9
13.4%
1,158.3
13.4%
1,181.5
13.4%
% of revenue
165.0
2.9%
186.3
2.9%
200.6
3.2%
199.3
3.0%
208.8
3.1%
211.5
3.1%
218.0
3.1%
229.0
3.1%
234.5
3.1%
240.1
3.1%
245.7
3.1%
251.2
3.1%
256.7
3.1%
262.2
3.1%
267.6
3.1%
272.9
3.1%
% of revenue
(225.3)
(4.0%)
(278.0)
(4.4%)
(262.0)
(4.1%)
(263.9)
(4.0%)
0.0
0.0%
(184.8)
(2.7%)
(190.5)
(2.7%)
(200.0)
(2.7%)
(204.9)
(2.7%)
(209.8)
(2.7%)
(214.7)
(2.7%)
(219.5)
(2.7%)
(224.3)
(2.7%)
(229.1)
(2.7%)
(233.8)
(2.7%)
(238.5)
(2.7%)
102.6
1.8%
(222.8)
(3.5%)
(255.7)
(4.0%)
269.3
4.0%
(83.0)
(1.2%)
(27.8)
(0.4%)
(28.7)
(0.4%)
(30.1)
(0.4%)
(30.9)
(0.4%)
(31.6)
(0.4%)
(32.3)
(0.4%)
(33.1)
(0.4%)
(33.8)
(0.4%)
(34.5)
(0.4%)
(35.2)
(0.4%)
(35.9)
(0.4%)
Free Cash Flow to Firm (FCFF)
% of revenue
843.5
15.1%
482.2
7.6%
367.4
5.8%
957.3
14.4%
968.9
14.4%
914.4
13.3%
942.5
13.3%
989.8
13.3%
1,014.0
13.3%
1,038.1
13.3%
1,062.2
13.3%
1,086.1
13.3%
1,109.9
13.3%
1,133.5
13.3%
1,156.9
13.3%
1,180.0
13.3%
% of FCFF used in calculation
74.5%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.97
0.91
0.85
0.80
0.75
0.70
0.66
0.62
0.58
0.55
Discounted FCFF (DFCFF)
660.0
856.6
844.1
811.3
779.3
748.1
717.7
688.2
659.4
631.5

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MKC DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
7,396.2M
34.5%
Terminal Value (TV)
25.8B
Discounted TV
% share of EV
14.1B
65.5%
Total Debt
4,341.9M
Shares outstanding
265.8M
FX rate
1.0
23.2% overvalued

Equity Value Bridge

MKC DCF Financials

Revenue
$6,723.7M -> $8,673.0M 2.6% CAGR
Operating Income
$1,060.3M -> $1,456.7M 3.2% CAGR
FCFF
$968.9M -> $1,156.9M 1.8% CAGR

MKC DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
6.0%
$64.0
$70.0
$77.0
$80.0
$80.0
6.5%
$57.0
$61.0
$67.0
$73.0
$77.0
6.6%
$56.0
$60.0
$65.0
$72.0
$77.0
7.5%
$45.0
$48.0
$52.0
$56.0
$61.0
8.0%
$41.0
$43.0
$46.0
$49.0
$53.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
6.0%
(24.0%)
(17.0%)
(9.0%)
(6.0%)
(6.0%)
6.5%
(33.0%)
(28.0%)
(21.0%)
(14.0%)
(9.0%)
6.6%
(34.0%)
(29.0%)
(23.0%)
(15.0%)
(9.0%)
7.5%
(47.0%)
(43.0%)
(39.0%)
(34.0%)
(28.0%)
8.0%
(52.0%)
(49.0%)
(46.0%)
(42.0%)
(37.0%)

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FAQ

What is McCormick & Company, Incorporated DCF (discounted cash flow) valuation?

As of Mar 03, 2025, McCormick & Company, Incorporated's Discounted Cash Flow (DCF) valuation estimates its share price at $65.1. This suggests it may be overvalued by (23.2%) compared to its current price of around $84.7, using a WACC of 6.6% and growth rates of 2.0%.

What is McCormick & Company, Incorporated WACC?

As of Mar 03, 2025, McCormick & Company, Incorporated's Weighted Average Cost of Capital (WACC) is approximately 6.6%.

What is McCormick & Company, Incorporated Enterprise Value?

As of Mar 03, 2025, McCormick & Company, Incorporated's Enterprise Value (EV) is approximately $21.5B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.