Valuation Modeling 201

Digging Deeper into Valuation Models

  • In this case study, you’ll analyze ConAgra Food’s $4.9 billion bid for Ralcorp Holdings and determine whether or not Ralcorp was correct in rejecting the offer.
  • Announced on May 4, 2011, ConAgra’s bid represented a play to invest more heavily in private-label products and to consolidate product lines within the food & beverage industry.
  • ConAgra is a leading consumer food company with a focus in the generic products (private-label) segment; Ralcorp has diversified business lines, including pasta, generic cereals, snacks, bakery, and the Post line of cereals.
  • After a previous rejection by Ralcorp, ConAgra made another bid on May 4, offering $86.00 per share (a 32% premium above Ralcorp’s share price on March 21 – the day before its first approach) in a bid valued at $4.9 billion.

Case Study Homework


In part 1 of this case study, you’ll complete a public comp analysis for Ralcorp and fill out key information on Equity Value, Enterprise Value, and revenue and EBITDA. You will also begin filling out information that will allow us to calendarize the public comps so that their fiscal years line up. Download Part 1.


In part 2, you’ll learn how to find the appropriate public comps and precedent transactions, how to finish the calendarization process, and also how to calculate Free Cash Flow in a DCF analysis. Once all of that is complete, you will use the finished valuation to answer the discussion questions. Download Part 2.



If you want to take advantage of the training discussed in the video, you’ll need to sign up for the BIWS program. Enroll Today.