Discounted Cash Flow

Formula Systems (1985) Ltd. ADR

FORTY · 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 $22.4m $72.7m 2.0% $1.58
2017 $1.4b (22.2%) $10.4m (-53.9%) $71.5m (-1.6%) 0.8% (-62.3%) $0.72 (-54.4%)
2018 $1.5b (10.2%) $32.4m (212.6%) $82.5m (15.4%) 2.2% (183.8%) $2.20 (205.6%)
2019 $1.7b (13.9%) $38.8m (19.9%) $195.8m (137.2%) 2.3% (5.3%) $2.56 (16.4%)
2020 $1.9b (13.7%) $46.8m (20.5%) $270.3m (38.1%) 2.4% (6.0%) $3.05 (19.1%)
2021 $2.4b (24.3%) $54.6m (16.7%) $206.9m (-23.5%) 2.3% (-6.1%) $3.57 (17.0%)
2022 $2.6b (7.0%) $81.4m (49.1%) $238.2m (15.2%) 3.2% (39.4%) $5.31 (48.7%)
2023 $2.6b (1.9%) $64.0m (-21.4%) $294.9m (23.8%) 2.4% (-22.8%) $4.19 (-21.1%)
2024 $2.8b (5.2%) $79.7m (24.5%) $324.3m (10.0%) 2.9% (18.3%) $5.22 (24.6%)
2025 $2.6b (-4.7%) $606.5m (661.2%) $381.9m (17.8%) 23.1% (699.0%) $36.09 (591.4%)

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