Discounted Cash Flow

Healthstream Inc.

HSTM · 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 $226.0m $3.8m $19.1m 1.7% $0.12
2017 $247.7m (9.6%) $10.0m (166.4%) $40.7m (112.5%) 4.0% (143.1%) $0.31 (158.3%)
2018 $231.6m (-6.5%) $32.2m (222.0%) $36.1m (-11.3%) 13.9% (244.4%) $1.00 (222.6%)
2019 $254.1m (9.7%) $15.8m (-51.1%) $43.7m (21.0%) 6.2% (-55.4%) $0.49 (-51.0%)
2020 $244.8m (-3.7%) $14.1m (-10.6%) $33.9m (-22.4%) 5.8% (-7.3%) $0.44 (-10.2%)
2021 $256.7m (4.9%) $5.8m (-58.5%) $39.0m (15.0%) 2.3% (-60.4%) $0.19 (-56.8%)
2022 $266.8m (3.9%) $12.1m (106.9%) $49.4m (26.8%) 4.5% (99.0%) $0.39 (105.3%)
2023 $279.1m (4.6%) $15.2m (25.8%) $61.8m (25.0%) 5.5% (20.3%) $0.50 (28.2%)
2024 $291.6m (4.5%) $20.0m (31.5%) $56.3m (-8.9%) 6.9% (25.8%) $0.66 (32.0%)
2025 $304.1m (4.3%) $18.3m (-8.3%) $59.6m (6.0%) 6.0% (-12.1%) $0.61 (-7.6%)

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