Discounted Cash Flow

Lennox International Inc.

LII · 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 $277.8m $270.2m 7.6% $6.39
2017 $3.8b (5.4%) $305.7m (10.0%) $226.8m (-16.1%) 8.0% (4.4%) $7.25 (13.5%)
2018 $3.9b (1.2%) $359.0m (17.4%) $400.3m (76.5%) 9.2% (16.1%) $8.84 (21.9%)
2019 $3.8b (-2.0%) $408.7m (13.8%) $290.5m (-27.4%) 10.7% (16.1%) $10.49 (18.7%)
2020 $3.6b (-4.5%) $356.3m (-12.8%) $533.9m (83.8%) 9.8% (-8.7%) $9.30 (-11.3%)
2021 $4.2b (15.4%) $464.0m (30.2%) $408.7m (-23.5%) 11.1% (12.8%) $12.47 (34.1%)
2022 $4.7b (12.5%) $497.1m (7.1%) $201.2m (-50.8%) 10.5% (-4.8%) $13.92 (11.6%)
2023 $5.0b (5.6%) $590.1m (18.7%) $486.0m (141.6%) 11.8% (12.4%) $16.61 (19.3%)
2024 $5.3b (7.2%) $806.9m (36.7%) $782.1m (60.9%) 15.1% (27.5%) $22.67 (36.5%)
2025 $5.2b (-2.7%) $805.8m (-0.1%) $638.8m (-18.3%) 15.5% (2.7%) $22.89 (1.0%)

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