Discounted Cash Flow

Federated Hermes, Inc.

FHI · 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 $1.1b $208.9m $239.9m 18.3% $2.00
2017 $1.1b (-3.5%) $291.3m (39.5%) $260.6m (8.6%) 26.4% (44.6%) $1.00 (-50.0%)
2018 $1.1b (3.0%) $220.3m (-24.4%) $189.0m (-27.5%) 19.4% (-26.6%) $1.06 (6.0%)
2019 $1.3b (16.8%) $272.3m (23.6%) $319.9m (69.2%) 20.5% (5.8%) $1.08 (1.9%)
2020 $1.4b (9.1%) $326.4m (19.8%) $359.7m (12.5%) 22.5% (9.8%) $3.25 (200.9%)
2021 $1.3b (-10.2%) $270.3m (-17.2%) $160.0m (-55.5%) 20.8% (-7.8%) $2.77 (-14.8%)
2022 $1.4b (11.2%) $239.5m (-11.4%) $319.6m (99.8%) 16.6% (-20.3%) $2.65 (-4.3%)
2023 $1.6b (11.3%) $299.0m (24.8%) $303.9m (-4.9%) 18.6% (12.1%) $3.40 (28.3%)
2024 $1.6b (1.4%) $268.3m (-10.3%) $342.5m (12.7%) 16.4% (-11.5%) $3.23 (-5.0%)
2025 $1.8b (10.3%) $403.3m (50.3%) $294.6m (-14.0%) 22.4% (36.2%) $5.13 (58.8%)

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