Report
Ioannis Pontikis
EUR 100.00 For Business Accounts Only

A Strong Nutrition Franchise and Entrenched Supply Chain Position Support Danone's Narrow Moat

After revisiting our estimates and accounting for Danone’s recent investor day, we are trimming our fair value estimate to EUR 70 per share ($16.30 per ADR) from EUR 71 ($17.50 per ADR), which implies 2019 multiples of 18.6 times earnings, around 12 times enterprise value/EBITDA, a free cash flow yield of 5%, and a dividend yield of 2.6%. These multiples are roughly in line with Danone's trading range over the past decade and slightly below our valuation of most large-cap competitors, due to Dan...
Underlying
Danone S.A. ADS

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Ioannis Pontikis

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