Discounted Cash Flow

Acadian Asset Management Inc.

AAMI · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2017 $887.4m $4.2m $139.7m 0.5% $0.04
2018 $928.2m (4.6%) $136.4m (3147.6%) $195.1m (39.7%) 14.7% (3004.9%) $1.26 (3050.0%)
2019 $819.5m (-11.7%) $223.9m (64.1%) $-138.5m (-171.0%) 27.3% (85.9%) $2.45 (94.4%)
2020 $718.5m (-12.3%) $286.7m (28.0%) $90.5m (165.3%) 39.9% (46.0%) $3.49 (42.4%)
2021 $523.8m (-27.1%) $828.4m (188.9%) $-11.5m (-112.7%) 158.2% (296.3%) $10.29 (194.8%)
2022 $417.2m (-20.4%) $100.6m (-87.9%) $100.7m (975.7%) 24.1% (-84.8%) $2.33 (-77.4%)
2023 $426.6m (2.3%) $1.3m (-98.7%) $54.5m (-45.9%) 0.3% (-98.7%) $1.55 (-33.5%)
2024 $505.6m (18.5%) $1.8m (38.5%) $45.9m (-15.8%) 0.4% (16.8%) $2.22 (43.2%)
2025 $563.7m (11.5%) $26.6m (1377.8%) $-14.3m (-131.2%) 4.7% (1225.5%) $2.21 (-0.5%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model