Discounted Cash Flow

Erie Indemnity Co.

ERIE · 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 $1.6b $210.4m $254.3m 13.2%
2017 $1.7b (6.0%) $197.0m (-6.4%) $197.1m (-22.5%) 11.6% (-11.6%)
2018 $2.4b (40.8%) $288.2m (46.3%) $263.6m (33.7%) 12.1% (3.9%)
2019 $2.5b (4.0%) $316.8m (9.9%) $364.5m (38.3%) 12.8% (5.7%)
2020 $2.5b (2.4%) $293.3m (-7.4%) $342.6m (-6.0%) 11.6% (-9.6%)
2021 $2.6b (3.8%) $297.9m (1.6%) $402.8m (17.6%) 11.3% (-2.2%)
2022 $2.8b (7.8%) $298.6m (0.2%) $298.9m (-25.8%) 10.5% (-7.0%)
2023 $3.3b (15.1%) $446.1m (49.4%) $288.6m (-3.5%) 13.6% (29.8%)
2024 $3.8b (16.1%) $600.3m (34.6%) $486.4m (68.6%) 15.8% (15.9%)
2025 $4.1b (7.2%) $559.3m (-6.8%) $571.0m (17.4%) 13.8% (-13.1%)

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