Valuation of Kellogg Co.

Abstract

This report is the result of the final work of Corporate Finance course (fall 2016-2017). Using the methods of valuation studied in class we estimated the equity value of Kellogg Co., an American multinational food manufacturing company at the end of December of 2016. The report is structured in five different parts: introduction, estimation of the cost of capital using the WACC method, valuation of the company using the multiples method, valuation of the company using the Discounted Cash Flow method and conclusion. Our results show that different valuation methods gave estimations close to the market price. While the multistage dividend model and multiples methods give the results bellow the market prices, the DCF method is approaching more closely the market valuation.