Cereal-maker Kellogg has created a wide array of popular breakfast foods over the years. Despite their powerful brand, they are still remain behind General Mills and Kraft Foods.
Using a discounted cash flow model with a WACC of 10.4%, I find that the company is currently fairly priced by the market. On a last note: while I believe that its cost cutting measures and favorable margins are attractive, I find that the company is not doing enough to advertise and increase market share.
The Takeover Analyst | Equity research on M&A and shareholder activism
