Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry in the United States, Canada, Bahamas, Mexico, Costa Rica, Panama, the United Kingdom, France, Sweden, Ireland, Belgium, Spain, and Luxembourg. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$1,556.50||$1,643.00||$1,944.00||$2,043.59||$2,148.29|
|Source||Analyst x2||Analyst x1||Analyst x2||Extrapolated @ (5.12%)||Extrapolated @ (5.12%)|
Discounted (@ 8.49%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $2,148 × (1 + 2.47%) ÷ (8.49% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$31,566 = $7,257 + $24,309
Value = Total value / Shares Outstanding ($31,566 / 521)Discount to Share Price
Value per share:
Current discount (share price of $54.65): 9.79%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.49% = 2.47% + (0.8 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($28,475,727,888).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.677 = 0.554 (1 + (1- 30%) (31.56%))
Levered Beta used in calculation = 0.8
Mr. William J. DeLaney, III, also known as Bill, serves as the Chief Executive Officer at Sysco Corporation since March 27, 2009. He serves as a Director of Express Scripts, Inc. He served as President at Sysco Corporation since March 2010. Mr. DeLaney served as the Chief Financial Officer and Executive Vice President at Sysco Corporation from July 1, 2007 to October 2009. He served as Senior Vice President of Financial Reporting of Sysco Corporation since January 7, 2007. He served as the President and Chief Executive Officer of SYSCO Charlotte, LLC since 2002. He served as an Executive Vice President of the Syracuse operation. He served as a Treasurer at SYSCO and Vice President from 1993 to 1994. Mr. Delaney served as a Chief Financial Officer and Senior Vice President since 1998. He served as an Independent Director of Aristotle Holding, Inc., since September 2011. He serves as a Director of The Center for Houston's Future and the Greater Houston Partnership. He has been an Independent Director of Express Scripts Holding Company since September 28, 2011 and Sysco Corporation since January 2009. Mr. DeLaney holds a Master of Business Administration from the Wharton Graduate Division of the University of Pennsylvania in 1982 and Bachelor of Business Administration from the University of Notre Dame, located in South Bend, Ind., in 1977.
Average tenure and age of the Sysco management team in years:
Average tenure and age of the Sysco board of directors in years:
Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry in the United States, Canada, Bahamas, Mexico, Costa Rica, Panama, the United Kingdom, France, Sweden, Ireland, Belgium, Spain, and Luxembourg. It operates through three segments: U.S. Foodservice Operations, International Foodservice Operations, and SYGMA. The company distributes a line of frozen foods, such as meats, seafood, fully prepared entrees, fruits, vegetables, and desserts; a line of canned and dry foods; fresh meats and seafood; dairy products; beverage products; imported specialties; and fresh produce. It also supplies various non-food items, including paper products comprising disposable napkins, plates, and cups; tableware consisting of China and silverware; cookware, which include pots, pans, and utensils; restaurant and kitchen equipment and supplies; and cleaning supplies. The company serves restaurants, hospitals and nursing homes, schools and colleges, hotels and motels, industrial caterers, and other foodservice venues through 324 distribution facilities. Sysco Corporation was founded in 1969 and is headquartered in Houston, Texas.
1390 Enclave Parkway,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NYSE||SYY||Common Stock||New York Stock Exchange||US||USD||26. Feb 1971|
|DB||SYY||Common Stock||Deutsche Boerse AG||DE||EUR||26. Feb 1971|
|BMV||SYY *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||26. Feb 1971|
|Sector:||Food and Staples Retailing|