Discounted Cash Flow

Ameriprise Financial Inc.

AMP · 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 $11.7b $1.3b $2.0b 11.2% $7.90
2017 $12.1b (2.9%) $1.5b (12.6%) $1.7b (-13.7%) 12.3% (9.5%) $9.60 (21.5%)
2018 $12.9b (7.0%) $2.1b (41.8%) $2.6b (52.7%) 16.2% (32.4%) $14.41 (50.1%)
2019 $13.1b (1.4%) $1.9b (-9.8%) $2.3b (-9.9%) 14.4% (-11.0%) $14.12 (-2.0%)
2020 $12.0b (-8.7%) $1.5b (-19.0%) $4.6b (97.5%) 12.8% (-11.2%) $12.39 (-12.3%)
2021 $13.4b (12.4%) $2.8b (79.9%) $3.3b (-28.1%) 20.5% (60.0%) $23.53 (89.9%)
2022 $14.3b (6.7%) $2.6b (-7.3%) $4.2b (27.1%) 17.8% (-13.1%) $22.99 (-2.3%)
2023 $16.1b (12.2%) $2.6b (-0.1%) $4.5b (6.5%) 15.9% (-11.0%) $24.18 (5.2%)
2024 $17.9b (11.4%) $3.4b (33.1%) $6.4b (42.6%) 19.0% (19.5%) $33.67 (39.2%)
2025 $18.9b (5.5%) $3.6b (4.8%) $8.2b (27.1%) 18.8% (-0.7%) $36.85 (9.4%)

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