As of June 13, 2025, Campbell Soup Co's estimated intrinsic value ranges from $25.94 to $52.57 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $52.57 | +57.8% |
| Discounted Cash Flow (5Y) | $44.25 | +32.8% |
| Dividend Discount Model (Multi-Stage) | $34.90 | +4.7% |
| Dividend Discount Model (Stable) | $25.94 | -22.2% |
| Earnings Power Value | $45.61 | +36.9% |
Is Campbell Soup Co (CPB) undervalued or overvalued?
With the current market price at $33.32, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Campbell Soup Co's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.37 | 0.39 |
| Cost of equity | 5.5% | 7.1% |
| Cost of debt | 4.0% | 4.9% |
| Tax rate | 23.4% | 24.2% |
| Debt/Equity ratio | 0.7 | 0.7 |
| After-tax WACC | 4.5% | 5.7% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $44 | $20,041M | 81.6% |
| 10-Year Growth | $53 | $22,521M | 66.8% |
| 5-Year EBITDA | $29 | $15,469M | 76.2% |
| 10-Year EBITDA | $38 | $18,240M | 59.0% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $1,032M |
| Discount Rate (WACC) | 5.7% - 4.5% |
| Enterprise Value | $18,092M - $22,799M |
| Net Debt | $6,846M |
| Equity Value | $11,246M - $15,953M |
| Outstanding Shares | 298M |
| Fair Value | $38 - $54 |
| Selected Fair Value | $45.61 |
| Metric | Value |
|---|---|
| Market Capitalization | $9935M |
| Enterprise Value | $16781M |
| Trailing P/E | 19.07 |
| Forward P/E | 16.08 |
| Trailing EV/EBITDA | 9.10 |
| Current Dividend Yield | 435.74% |
| Dividend Growth Rate (5Y) | 1.10% |
| Debt-to-Equity Ratio | 0.70 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $15.77 |
| Discounted Cash Flow (5Y) | 25% | $11.06 |
| Dividend Discount Model (Multi-Stage) | 20% | $6.98 |
| Dividend Discount Model (Stable) | 15% | $3.89 |
| Earnings Power Value | 10% | $4.56 |
| Weighted Average | 100% | $42.26 |
Based on our comprehensive valuation analysis, Campbell Soup Co's weighted average intrinsic value is $42.26, which is approximately 26.8% above the current market price of $33.32.
Key investment considerations:
Given these factors, we believe Campbell Soup Co is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.