Discounted Cash Flow

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KBH · 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 $3.6b $105.6m $183.9m 2.9% $1.23
2017 $4.4b (21.5%) $180.6m (71.0%) $505.1m (174.7%) 4.1% (40.7%) $2.09 (69.9%)
2018 $4.5b (4.1%) $170.4m (-5.7%) $214.1m (-57.6%) 3.7% (-9.4%) $1.93 (-7.7%)
2019 $4.6b (0.1%) $268.8m (57.8%) $210.6m (-1.7%) 5.9% (57.6%) $3.04 (57.5%)
2020 $4.2b (-8.1%) $296.2m (10.2%) $281.8m (33.8%) 7.1% (20.0%) $3.26 (7.2%)
2021 $5.7b (36.9%) $564.7m (90.6%) $-76.7m (-127.2%) 9.9% (39.3%) $6.25 (91.6%)
2022 $6.9b (20.6%) $816.7m (44.6%) $138.2m (280.2%) 11.8% (19.9%) $9.40 (50.5%)
2023 $6.4b (-7.1%) $590.2m (-27.7%) $1.0b (657.9%) 9.2% (-22.2%) $7.30 (-22.4%)
2024 $6.9b (8.1%) $655.0m (11.0%) $323.4m (-69.1%) 9.5% (2.7%) $8.76 (20.0%)
2025 $6.2b (-10.0%) $428.8m (-34.5%) $287.3m (-11.2%) 6.9% (-27.3%) $6.31 (-27.9%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

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