Deutsche Bank Reviews Kantar Retail "PoweRankings"
In its report, Deutsche Bank writes, “[O]ur industry DCF suggests that the composite is undervalued by roughly 11% relative to its future cash flow, assuming 4.4% annual sales growth and 0.4 points of annual operating margin expansion discounted at a 9% WACC derived from CAPM and a 1.5% terminal value growth rate, slightly below inflation. Downside risks include higher commodity costs without currency or pricing offset, higher competitive spending, slowdown in developing markets, adverse regulatory or tax developments, and weakening macro environment driving higher private label growth”
Companies included in the Deutsche Bank report are: PepsiCo (NYSE: PEP), Coca-Cola (NYSE: KO), ConAgra Foods (NYSE: CAG), Clorox (NYSE: CLX), General Mills (NYSE: GIS), Kellogg (NYSE: K), and Kraft Foods (NYSE: KFT)
