US Equities Analysis

TSN — Tyson Foods

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 3.64%
Profit Margins 0.81%
Return on Equity 2.62%
Return on Assets 2.47%
Free Float 0.27B
Dividend Yield 3.53%
Short Int % Utilisation 3.53%

2.2 Growth

Metric Value
Revenue Growth 4.4%
Free Cash Flow 1.03B
EBITDA 10.13 (Ratio)
Enterprise Value 27.45B
EV/Revenue 0.49
EV/EBITDA 10.13

Revenue growth of 4.4% suggests mature or challenged top-line momentum.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 9.54%
Risk / Std Dev (Ann.)* 25.66%
1-Year Price Return* 5.98%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $58.17
52-Week Range $50.56 – $69.48
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $54.44B
Prior annual revenue $53.31B
EBIT $1.22B
Tax rate 34.10%
NOPAT = EBIT × (1 − tax rate) $802.66M
Forecast start-growth basis 2.12%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $802.66M
Add: depreciation & amortisation $1.36B
Less: capital expenditure -$978.00M
Less/(add): working-capital cash-flow movement -$106.00M
Current unlevered FCFF $1.08B

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 2.12% $819.71M $1.39B -$998.77M -$108.25M $1.10B $1.07B
2 2.22% $837.88M $1.42B -$1.12B -$110.65M $1.03B $945.05M
3 2.31% $857.25M $1.45B -$1.25B -$113.21M $948.57M $825.68M
4 2.41% $877.88M $1.49B -$1.38B -$115.93M $866.67M $713.67M
5 2.50% $899.83M $1.53B -$1.53B -$118.83M $780.99M $608.40M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 0.38
Cost of equity 6.79%
Pre-tax cost of debt 4.82%
WACC 5.71%
WACC validation requires assumption review

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $24.97B
Implied terminal EV / EBITDA 8.63x
Terminal value as % of enterprise value 81.95%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $4.17B
Present value of terminal value $18.92B
Indicated enterprise value $23.08B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $23.08B
Less: gross interest-bearing debt $8.83B
Add: cash and equivalents $1.23B
Add: affiliate investments $0.00
Less: minority interests $142.00M
Indicated common equity value $15.34B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 357,000,000.00
Share-count basis reported diluted weighted-average shares
Current market price $58.51
DCF indicative value per share $42.96
Indicative value vs. market price -26.56%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range review required
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% within review band

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:51:47.787070 UTC; latest reported fiscal period: 2025-09-30 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

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