Discounted Cash Flow

Heritage Financial Corp. /Wa/

HFWA · 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 $38.9m $47.3m $1.30
2017 $41.8m (7.4%) $70.5m (49.1%) $1.39 (6.9%)
2018 $53.1m (27.0%) $59.2m (-16.0%) $1.49 (7.2%)
2019 $67.6m (27.3%) $74.6m (26.0%) $1.84 (23.5%)
2020 $46.6m (-31.1%) $63.3m (-15.1%) $1.29 (-29.9%)
2021 $98.0m (110.5%) $66.5m (5.0%) $2.75 (113.2%)
2022 $81.9m (-16.5%) $90.4m (36.0%) $2.33 (-15.3%)
2023 $61.8m (-24.6%) $99.1m (9.6%) $1.76 (-24.5%)
2024 $43.3m (-30.0%) $61.0m (-38.5%) $1.26 (-28.4%)
2025 $67.5m (56.1%) $85.7m (40.4%) $1.99 (57.9%)

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