Taylor Captline
Matthew Chadwell
Hadd Francis
41 companies
12.04% of S&P 500
13.06% of SIM Portfolio
Telecommunica
tion Services,
2.40%
Utilities, Cash,
2.50% 3.69%
Materials, 3.88%
Sector Industries include:
Agricultural Products
Industrials,
9.44%
Brewers
Information
Distiller and Vinters Technology,
19.92%
Food Distributors
Household Products
Hypermarkets and Supermarkets
Packaged Foods and Meats
Personal Products
Retail – Drugs
Retail – Food
Soft Drinks
Tobacco
Consumer
Discretionary,
7.93%
Consumer
Staples, 13.06%
Energy, 11.31%
Health Care,
17.74%
Financials,
8.14%
Colgate Palmolive
Terminal
Discount
Rate
$76.05
9%
10%
10%
11%
11%
12%
12%
1%
$86.95
$90.77
$95.14
$100.19
$106.07
$113.03
$121.37
$80.71
$83.95
$87.62
$91.82
$96.66
$102.30
$108.98
$75.21
$77.97
$81.08
$84.60
$88.63
$93.28
$98.70
$70.32
$72.69
$75.35
$78.33
$81.71
$85.58
$90.04
$65.96
$68.00
$70.28
$72.83
$75.70
$78.94
$82.65
$62.03
$63.81
$65.78
$67.97
$70.42
$73.17
$76.29
$58.49
$60.05
$61.76
$63.65
$65.75
$68.10
$70.75
Terminal
2%
FCF
2%
Growth
3%
Rate
3%
4%
4%
Weights
Target
DCF
25%
$76.05
Forward P/E
25%
$76.05
Price/Sales
25%
$76.05
Price/CF
25%
$76.05
TARGET PRICE
$75.98
Terminal FCF
Growth Rate
Terminal Discount Rate
47.34
8%
9%
10%
11%
12%
13%
1%
49.37
42.98
38.02
34.06
30.83
28.14
2%
54.08
46.23
40.35
35.78
32.12
29.14
3%
60.68
50.57
43.34
37.93
33.71
30.34
4%
70.58
56.64
47.34
40.69
35.69
31.80
5%
87.07
65.75
52.93
44.37
38.24
33.63
6%
120.06
80.93
61.32
49.53
41.64
35.98
•
•
•
•
Risk Free Rate: 3.71%
Market Premium: 7.00%
CAPM Discount Factor: 6.23%
I used 9.81%
Terminal FCF
Growth
$
59.73
2.5% $
3.0%
3.5%
4.0%
4.5%
9.00%
56.55 $
59.73
63.48
67.99
73.49
9.25%
54.17 $
57.05
60.43
64.45
69.31
Discount Rate
9.50%
51.97 $
54.58
57.63
61.23
65.56
9.75%
49.92 $
52.30
55.06
58.30
62.16
10.00%
48.01 $
50.19
52.70
55.62
59.08
10.25%
46.24
48.23
50.51
53.16
56.27



$57.58
Current: $50.59
Implied upside: 13.8%
H. J. Heinz Company, together with its subsidiaries, engages in
manufacturing and marketing food products throughout the world. The
company’s products include ketchup, condiments and sauces, frozen
food, soups, beans and pasta meals, infant nutrition and other processed
food products.
The company’s products are manufactured and packaged to provide
safe, wholesome foods for consumers, as well as foodservice and
institutional customers.
The company’s products are sold through its own sales organizations
and through independent brokers, agents and distributors to chain,
wholesale, cooperative and independent grocery accounts, convenience
stores, bakeries, pharmacies, mass merchants, club stores, foodservice
distributors and institutions, including hotels, restaurants, hospitals,
health-care facilities, and certain government agencies.




WMT: 13.8%
CL: 9.55%
PM: 11.02%
HNZ: 28%
Current Weight
Sell/Buy
New Weight
PM
2.42%
68bps
1.74%
CL
2.64%
68bps
1.69%
WMT
3.50%
68bps
2.82%
102bps
1.02%
HNZ
0