Discounted Cash Flow

Houlihan Lokey, Inc.

HLI · 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)
2017 $108.3m $214.8m $1.77
2018 $172.3m (59.0%) $242.9m (13.1%) $2.76 (55.9%)
2019 $1.1b $159.1m (-7.6%) $217.5m (-10.4%) 14.7% $2.56 (-7.2%)
2020 $1.2b (6.9%) $183.8m (15.5%) $266.9m (22.7%) 15.9% (8.0%) $2.96 (15.6%)
2021 $1.5b (31.6%) $312.8m (70.2%) $565.7m (111.9%) 20.5% (29.3%) $4.75 (60.5%)
2022 $2.3b (48.8%) $437.8m (40.0%) $727.9m (28.7%) 19.3% (-5.9%) $6.74 (41.9%)
2023 $1.8b (-20.3%) $254.2m (-41.9%) $85.5m (-88.2%) 14.0% (-27.1%) $4.01 (-40.5%)
2024 $1.9b (5.8%) $280.3m (10.3%) $261.7m (206.0%) 14.6% (4.2%) $4.36 (8.7%)
2025 $2.4b (24.8%) $399.7m (42.6%) $808.9m (209.1%) 16.7% (14.3%) $6.08 (39.4%)
2026 $2.6b (9.5%) $425.7m (6.5%) $681.8m (-15.7%) 16.3% (-2.8%) $6.40 (5.3%)

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