Discounted Cash Flow

Donaldson Co. Inc.

DCI · 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 $2.2b $190.8m $213.2m 8.6% $1.43
2017 $2.4b (6.8%) $232.8m (22.0%) $244.4m (14.6%) 9.8% (14.2%) $1.76 (23.1%)
2018 $2.7b (15.3%) $180.3m (-22.6%) $165.4m (-32.3%) 6.6% (-32.8%) $1.38 (-21.6%)
2019 $2.8b (4.0%) $267.2m (48.2%) $195.1m (18.0%) 9.4% (42.4%) $2.08 (50.7%)
2020 $2.6b (-9.2%) $-82.9m (-131.0%) $262.6m (34.6%) -3.2% (-134.2%) $2.03 (-2.4%)
2021 $2.9b (10.5%) $286.9m (446.1%) $342.9m (30.6%) 10.1% (413.1%) $2.27 (11.8%)
2022 $3.3b (15.9%) $332.8m (16.0%) $167.3m (-51.2%) 10.1% (0.1%) $2.69 (18.5%)
2023 $3.4b (3.8%) $358.8m (7.8%) $426.0m (154.6%) 10.5% (3.9%) $2.95 (9.7%)
2024 $3.6b (4.5%) $414.0m (15.4%) $406.9m (-4.5%) 11.5% (10.4%) $3.43 (16.3%)
2025 $3.7b (2.9%) $367.0m (-11.4%) $339.9m (-16.5%) 9.9% (-13.9%) $3.09 (-9.9%)

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