Discounted Cash Flow

Bank of Montreal /Can/ Foreign

BMO · 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 $21.1b $4.6b $-3.0b 21.9% $6.94
2017 $22.3b (5.6%) $5.3b (15.7%) $2.6b (188.3%) 24.0% (9.6%) $7.95 (14.6%)
2018 $23.0b (3.5%) $5.5b (1.9%) $17.6b (574.4%) 23.7% (-1.5%) $8.19 (3.0%)
2019 $25.5b (10.6%) $5.8b (5.7%) $28.8b (63.9%) 22.6% (-4.5%) $8.68 (6.0%)
2020 $25.2b (-1.2%) $5.1b (-11.5%) $50.4b (75.0%) 20.2% (-10.4%) $7.56 (-12.9%)
2021 $27.2b (7.9%) $7.8b (52.1%) $43.6b (-13.6%) 28.5% (40.9%) $11.60 (53.4%)
2022 $33.7b (24.0%) $13.5b (74.6%) $4.2b (-90.4%) 40.2% (40.8%) $20.04 (72.8%)
2023 $31.2b (-7.4%) $4.4b (-67.8%) $8.7b (108.3%) 14.0% (-65.2%) $5.69 (-71.6%)
2024 $32.8b (5.1%) $7.3b (67.7%) $27.8b (219.1%) 22.3% (59.5%) $9.52 (67.3%)
2025 $36.3b (10.6%) $8.7b (19.0%) $9.7b (-64.9%) 24.0% (7.6%) $11.46 (20.4%)

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