Discounted Cash Flow

Emerson Electric Co.

EMR · 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 $14.5b $1.6b $2.4b 11.3% $2.53
2017 $15.3b (5.1%) $1.5b (-7.2%) $1.4b (-41.0%) 9.9% (-11.7%) $2.35 (-7.1%)
2018 $17.4b (14.0%) $2.2b (45.1%) $2.3b (58.4%) 12.7% (27.3%) $3.48 (48.1%)
2019 $18.4b (5.5%) $2.3b (4.7%) $2.4b (6.0%) 12.6% (-0.8%) $3.74 (7.5%)
2020 $16.8b (-8.6%) $2.0b (-14.8%) $2.5b (5.5%) 11.7% (-6.7%) $3.26 (-12.8%)
2021 $18.2b (8.6%) $2.3b (17.2%) $3.0b (17.6%) 12.6% (7.9%) $3.85 (18.1%)
2022 $19.6b (7.6%) $3.2b (40.3%) $2.4b (-20.1%) 16.5% (30.3%) $5.44 (41.3%)
2023 $15.2b (-22.7%) $13.2b (309.1%) $274.0m (-88.5%) 87.2% (429.6%) $23.00 (322.8%)
2024 $17.5b (15.3%) $2.0b (-85.1%) $2.9b (963.1%) 11.3% (-87.1%) $3.44 (-85.0%)
2025 $18.0b (3.0%) $2.3b (16.5%) $2.7b (-8.4%) 12.7% (13.1%) $4.06 (18.0%)

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