Discounted Cash Flow

Iridium Communications Inc.

IRDM · 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 $433.6m $111.0m $-180.5m 25.6% $1.00
2017 $448.0m (3.3%) $233.9m (110.6%) $-140.5m (22.2%) 52.2% (103.8%) $2.23 (123.0%)
2018 $523.0m (16.7%) $-13.4m (-105.7%) $-127.7m (9.1%) -2.6% (-104.9%) $-0.22 (-109.9%)
2019 $560.4m (7.2%) $-162.0m (-1110.4%) $80.3m (162.9%) -28.9% (-1029.5%) $-1.33 (-504.5%)
2020 $583.4m (4.1%) $-56.1m (65.4%) $211.1m (162.8%) -9.6% (66.8%) $-0.42 (68.4%)
2021 $614.5m (5.3%) $-9.3m (83.4%) $-9.3m (-104.4%) -1.5% (84.2%) $-0.07 (83.3%)
2022 $721.0m (17.3%) $8.7m (193.6%) $8.7m (193.6%) 1.2% (179.8%) $0.07 (200.0%)
2023 $790.7m (9.7%) $15.4m (76.7%) $15.4m (76.7%) 1.9% (61.2%) $0.12 (71.4%)
2024 $830.7m (5.1%) $112.8m (631.6%) $306.1m (1885.5%) 13.6% (596.4%) $0.95 (691.7%)
2025 $871.7m (4.9%) $114.4m (1.4%) $299.8m (-2.0%) 13.1% (-3.4%) $1.07 (12.6%)

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