Analysts use different methods and approaches to company valuation on a daily basis. The method applied in this paper is a fundamental measure of the value of the company, the method of discounted cash flows to the firm. On the example of the vertically integrated company Atlantic Grupa d.d. the entire valuation process was carried out, from business analysis and analysis of financial statements to the company's business forecast and calculation of its value. The method was chosen because it represents the ability of a company to pay dividends, repurchase shares or repay debt holders. Atlantic Grupa was selected as the subject of the paper considering that it is the leading company in the food industry in Croatia and the fact that its initial public offering was the largest private offering on the Zagreb Stock Exchange. Based on the valuation, it was concluded that Atlantic Grupa's share was undervalued by about 27% because its intrinsic value is higher than the market price. Given that the method contains many assumptions and challenges, a sensitivity analysis of the estimated value of the company was performed, from which it can be subsequently calculated that the beta of the stock according to the market price is higher than the estimated one. Sales revenues and expenses, which are more optimistic than the opinion of market investors, also play an important role in the assessment.