Discounted Cash Flow

Kyndryl Holdings, Inc.

KD · 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)
2019 $20.3b $-943.0m $1.1b -4.7% $-4.21
2020 $19.4b (-4.6%) $-2.0b (-113.3%) $-408.0m (-136.0%) -10.4% (-123.5%) $-8.97 (-113.1%)
2021 $19.4b (0.0%) $-2.3b (-15.3%) $-1.2b (-183.1%) -12.0% (-15.3%) $-10.35 (-15.4%)
2023 $17.0b (-12.0%) $-1.4b (40.8%) $-81.0m (93.0%) -8.1% (32.7%) $-6.06 (41.4%)
2024 $16.1b (-5.7%) $-340.0m (75.3%) $-197.0m (-143.2%) -2.1% (73.8%) $-1.48 (75.6%)
2025 $15.1b (-6.2%) $252.0m (174.1%) $335.0m (270.1%) 1.7% (179.0%) $1.09 (173.6%)
2026 $15.1b (0.2%) $198.0m (-21.4%) $340.0m (1.5%) 1.3% (-21.6%) $0.87 (-20.2%)

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