Discounted Cash Flow

Arcos Dorados Holdings Inc. Foreign

ARCO · 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 $2.9b $78.8m $71.9m 2.7% $0.37
2017 $3.3b (13.3%) $129.2m (63.9%) $80.4m (11.8%) 3.9% (44.6%) $0.61 (64.9%)
2018 $3.1b (-7.2%) $36.8m (-71.5%) $-17.3m (-121.5%) 1.2% (-69.3%) $0.18 (-70.5%)
2019 $3.0b (-4.0%) $79.9m (116.8%) $-41.8m (-141.2%) 2.7% (125.8%) $0.39 (116.7%)
2020 $2.0b (-32.9%) $-149.5m (-287.1%) $-70.3m (-68.5%) -7.5% (-379.0%) $-0.73 (-287.2%)
2021 $2.7b (34.1%) $45.5m (130.4%) $143.0m (303.3%) 1.7% (122.7%) $0.22 (130.1%)
2022 $3.6b (36.1%) $140.3m (208.5%) $128.3m (-10.3%) 3.9% (126.8%) $0.67 (204.5%)
2023 $4.3b (19.7%) $181.3m (29.2%) $21.9m (-83.0%) 4.2% (7.9%) $0.86 (28.4%)
2024 $4.5b (3.2%) $148.8m (-17.9%) $-60.8m (-378.0%) 3.3% (-20.5%) $0.71 (-17.4%)
2025 $4.7b (4.7%) $212.1m (42.6%) $15.0m (124.7%) 4.5% (36.2%) $1.01 (42.3%)

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