Discounted Cash Flow

Applied Industrial Technologies Inc.

AIT · 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)
2016 $2.5b $29.6m $147.9m 1.2% $0.75
2017 $2.6b (2.9%) $133.9m (352.8%) $147.6m (-0.2%) 5.2% (339.8%) $3.43 (357.3%)
2018 $3.1b (18.5%) $141.6m (5.8%) $124.1m (-15.9%) 4.6% (-10.7%) $3.65 (6.4%)
2019 $3.5b (13.0%) $144.0m (1.7%) $161.6m (30.3%) 4.1% (-10.0%) $3.72 (1.9%)
2020 $3.2b (-6.5%) $24.0m (-83.3%) $276.6m (71.1%) 0.7% (-82.1%) $0.62 (-83.3%)
2021 $3.2b (-0.3%) $144.8m (502.1%) $225.8m (-18.3%) 4.5% (503.9%) $3.73 (501.6%)
2022 $3.8b (17.8%) $257.4m (77.8%) $169.4m (-25.0%) 6.8% (51.0%) $6.69 (79.4%)
2023 $4.4b (15.8%) $346.7m (34.7%) $317.5m (87.4%) 7.9% (16.3%) $8.98 (34.2%)
2024 $4.5b (1.5%) $385.8m (11.3%) $346.5m (9.1%) 8.6% (9.6%) $9.98 (11.1%)
2025 $4.6b (1.9%) $393.0m (1.9%) $465.2m (34.2%) 8.6% (-0.0%) $10.26 (2.8%)

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