[VIDEO] General Mills is Stable but is it Worth it?

February 24, 2013 | Comments (2)

by Dan Myers

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General Mills (GIS) is a company that is near and dear to everyone’s heart. If you eat cereal, you have most likely eaten one of their brands.

General Mills has a great business, but I go through a surprising point from the annual statement which affects the ultimate growth rate when valuing the company.

When you look at General Mills and the overall picture of the company, it looks a lot like Heinz. Towards the end of the video I also provide some comments about Buffett and his purchase of Heinz and whether he paid a fair price or not.

More specifically, in this session you’ll find out about:

  • General Mills business model
  • A run down of the financial statements and how to interpret it for investments
  • Why General Mills has a bad quick and current ratio
  • Why debt is not always bad
  • Whether goodwill is a red flag
  • DCF valuation of General Mills
  • Why General Mills looks overvalued
  • Whether Buffett overpaid for Heinz

Watch the Video on General Mills

If you are reading from email, you likely will not see the embedded video, so here are links to take you to each one.

Part 1 | Part 2 | Part 3

Enjoy.