Discounted Cash Flow

Credit Acceptance Corp.

CACC · 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 $969.2m $332.8m $501.7m 34.3% $16.37
2017 $1.1b (14.5%) $470.2m (41.3%) $557.6m (11.1%) 42.4% (23.4%) $24.12 (47.3%)
2018 $1.3b (15.8%) $574.0m (22.1%) $678.8m (21.7%) 44.6% (5.4%) $29.52 (22.4%)
2019 $1.5b (15.8%) $656.1m (14.3%) $785.5m (15.7%) 44.1% (-1.3%) $34.71 (17.6%)
2020 $1.7b (12.1%) $421.0m (-35.8%) $976.7m (24.3%) 25.2% (-42.8%) $23.57 (-32.1%)
2021 $1.9b (11.2%) $958.3m (127.6%) $1.1b (8.7%) 51.6% (104.7%) $59.57 (152.7%)
2022 $1.8b (-1.3%) $535.8m (-44.1%) $1.2b (16.4%) 29.2% (-43.4%) $39.50 (-33.7%)
2023 $1.9b (3.8%) $286.1m (-46.6%) $1.2b (-2.9%) 15.0% (-48.6%) $22.09 (-44.1%)
2024 $2.2b (13.7%) $247.9m (-13.4%) $1.1b (-5.3%) 11.5% (-23.8%) $20.12 (-8.9%)
2025 $2.3b (7.2%) $423.9m (71.0%) $1.1b (-7.3%) 18.3% (59.6%) $37.02 (84.0%)

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