Discounted Cash Flow

Alaska AIR Group, Inc.

ALK · 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 $5.9b $814.0m $708.0m 13.7% $6.59
2017 $7.9b (33.8%) $1.0b (27.0%) $564.0m (-20.3%) 13.0% (-5.0%) $8.39 (27.3%)
2018 $8.3b (4.2%) $437.0m (-57.7%) $235.0m (-58.3%) 5.3% (-59.4%) $3.55 (-57.7%)
2019 $8.8b (6.3%) $769.0m (76.0%) $1.0b (336.6%) 8.8% (65.6%) $6.24 (75.8%)
2020 $3.6b (-59.4%) $-1.3b (-272.2%) $-440.0m (-142.9%) -37.1% (-524.0%) $-10.72 (-271.8%)
2021 $6.2b (73.2%) $478.0m (136.1%) $738.0m (267.7%) 7.7% (120.8%) $3.82 (135.6%)
2022 $9.6b (56.2%) $58.0m (-87.9%) $-253.0m (-134.3%) 0.6% (-92.2%) $0.46 (-88.0%)
2023 $10.4b (8.1%) $235.0m (305.2%) $-444.0m (-75.5%) 2.3% (274.9%) $1.84 (300.0%)
2024 $11.7b (12.6%) $395.0m (68.1%) $1.4b (414.4%) 3.4% (49.3%) $3.13 (70.1%)
2025 $14.2b (21.3%) $100.0m (-74.7%) $1.2b (-15.5%) 0.7% (-79.1%) $0.85 (-72.8%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

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