Discounted Cash Flow

Investors Title Co.

ITIC · 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 $138.5m $19.5m $20.1m 14.1% $10.23
2017 $161.6m (16.7%) $25.7m (31.7%) $17.0m (-15.3%) 15.9% (12.8%) $13.63 (33.2%)
2018 $14.2m (-91.2%) $21.9m (-14.8%) $22.5m (32.4%) 154.4% (871.0%) $11.60 (-14.9%)
2019 $17.4m (22.7%) $31.5m (43.7%) $19.4m (-13.7%) 180.8% (17.1%) $16.66 (43.6%)
2020 $17.0m (-2.2%) $39.4m (25.3%) $30.9m (59.0%) 231.7% (28.1%) $20.84 (25.1%)
2021 $23.3m (37.2%) $67.0m (70.0%) $45.4m (46.9%) 287.1% (23.9%) $35.38 (69.8%)
2022 $36.2m (55.3%) $23.9m (-64.3%) $30.5m (-32.8%) 65.9% (-77.0%) $12.60 (-64.4%)
2023 $36.3m (0.3%) $21.7m (-9.3%) $-1.8m (-105.8%) 59.7% (-9.5%) $11.45 (-9.1%)
2024 $35.1m (-3.3%) $31.1m (43.3%) $22.4m (1373.7%) 88.4% (48.2%) $16.48 (43.9%)
2025 $40.9m (16.4%) $35.2m (13.2%) $25.4m (13.2%) 86.0% (-2.7%) $18.64 (13.1%)

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