WACC

RF 1.80% Weights
Market Risk PR 6.00% Debt
Beta 0.651 Equity
Cost of equity 5.71%

Tax Rate 35%

Cost of Debt 3.06%

WACC 5.26%
 3848 16.65%
19260 83.35%
 2013 2014E 2015E 2016E 2017E
Sales 11,529 12,141 12,657 13,112 13,744
EBITDA 2,057 2,196 2,340 2,453 2,613
Depreciation and Amortization 352 362 375 392 411
EBIT 1,705 1,834 1,965 2,061 2,202
Interest (4.5%)
EPS 3.58 3.78 3.83 4.00 4.29
EBIT(1-T) 1,108 1,192 1,277 1,340 1,431
Capex 399.00 399.00 399.00 399.00 399.00
Change in NWC -57.00 57.28 41.28 36.4 50.56
FCF 1,118.25 1,097.82 1,211.97 1,296.25 1,392.74

WACC 5.26%
Terminal growth rate 2.00%
PV of CFs $5,550.37
Terminal Value $47,166.75 SENSITIVITY ANALYSIS
Present value of TV $36,494.32 WACC
Firm Value $42,044.69 $126.71 4.26%
Long-term Debt $3,848.00 1.80%

PERPETUAL
Cash $2,477.00 1.90%

GROWTH
Value of Equity $40,673.69 2.00%
Number of Outstanding Shares 321 2.10%
Value per share $126.71 2.20%
 2018E 2013 2014E 2015E 2016E 2017E
14,446 Sales 11,529 12,141 12,657 13,112 13,744
2,789 WC 914 971.28 1012.56 1048.96 1099.52
434
2,355

4.60
1,531
399.00
56.16
1,509.59

SENSITIVITY ANALYSIS
WACC
4.76% 5.26% 5.76% 6.26%
2018E
14,446
1155.68
Relative Valuation
P/B P/S
2013 2014 (P) 2013
Mean 5.80x 5.70x 1.70x
Median 4.80x 5.10x 1.70x

Mean 5.80x 5.70x 1.70x

Heinz
Implied EV 20055.2 16239.3 19599.3
Cash 2477
Debt 6008
Market Value 16524.2 16239.3 19599.3
No. of Shares 321
Price/Share 51.48 50.59 61.06
 P/S P/E EV/EBITDA EV/FCF
2014 (P) 2013 2014 (P) 2013 2014 (P) 2013
1.80x 5.80x 5.70x 11.30x 11.70x 23.80x
1.80x 4.80x 5.10x 11.30x 11.60x 21.50x

1.80x 5.80x 5.70x 11.30x 11.70x 23.80x

21853.8 20.764 21.546 23244.1 25693.2 26614.35

21853.8 20.764 21.546 19713.1 22162.2 23083.35

68.08 20.76 21.55 61.41 69.04 71.91

 EV/FCF
2014 (P)
28.60x
29.00x

28.60x

31397.65

27866.65

86.81