Discounted Cash Flow

Huntington Ingalls Industries, Inc.

HII · 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 $7.1b $573.0m $537.0m 8.1% $12.24
2017 $7.4b (5.3%) $479.0m (-16.4%) $432.0m (-19.6%) 6.4% (-20.6%) $10.48 (-14.4%)
2018 $8.2b (9.9%) $836.0m (74.5%) $451.0m (4.4%) 10.2% (58.8%) $19.09 (82.2%)
2019 $8.9b (8.8%) $549.0m (-34.3%) $366.0m (-18.8%) 6.2% (-39.7%) $13.26 (-30.5%)
2020 $9.4b (5.2%) $696.0m (26.8%) $740.0m (102.2%) 7.4% (20.5%) $17.14 (29.3%)
2021 $9.5b (1.7%) $544.0m (-21.8%) $429.0m (-42.0%) 5.7% (-23.2%) $13.50 (-21.2%)
2022 $10.7b (12.1%) $579.0m (6.4%) $482.0m (12.4%) 5.4% (-5.1%) $14.44 (7.0%)
2023 $11.5b (7.3%) $681.0m (17.6%) $678.0m (40.7%) 5.9% (9.6%) $17.07 (18.2%)
2024 $11.5b (0.7%) $550.0m (-19.2%) $26.0m (-96.2%) 4.8% (-19.8%) $13.96 (-18.2%)
2025 $12.5b (8.2%) $605.0m (10.0%) $794.0m (2953.8%) 4.8% (1.6%) $15.39 (10.2%)

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