Discounted Cash Flow

Check Point Software Technologies Ltd. ADR

CHKP · 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 $1.7b $724.8m $922.2m 41.6% $4.26
2017 $1.9b (6.5%) $802.9m (10.8%) $1.1b (17.2%) 43.3% (4.0%) $4.93 (15.7%)
2018 $1.9b (3.3%) $821.3m (2.3%) $1.1b (4.2%) 42.9% (-1.0%) $5.24 (6.3%)
2019 $2.0b (4.1%) $825.7m (0.5%) $1.1b (-4.2%) 41.4% (-3.4%) $5.48 (4.6%)
2020 $2.1b (3.5%) $846.6m (2.5%) $1.1b (5.9%) 41.0% (-0.9%) $6.03 (10.0%)
2021 $2.2b (4.9%) $815.6m (-3.7%) $1.2b (4.1%) 37.6% (-8.2%) $6.13 (1.7%)
2022 $2.3b (7.5%) $796.9m (-2.3%) $1.1b (-9.4%) 34.2% (-9.1%) $6.37 (3.9%)
2023 $2.4b (3.6%) $840.3m (5.4%) $1.0b (-5.3%) 34.8% (1.7%) $7.19 (12.9%)
2024 $2.6b (6.2%) $845.7m (0.6%) $1.0b (0.9%) 33.0% (-5.3%) $7.65 (6.4%)
2025 $2.7b (6.3%) $1.1b (25.0%) $1.2b (14.1%) 38.8% (17.6%) $9.85 (28.8%)

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