Discounted Cash Flow

Legalzoom.com, Inc.

LZ · 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 $408.4m $7.4m $34.3m 1.8% $0.04
2020 $470.6m (15.2%) $9.9m (33.0%) $82.5m (140.1%) 2.1% (15.4%) $0.06 (50.0%)
2021 $575.1m (22.2%) $-108.7m (-1198.1%) $42.4m (-48.6%) -18.9% (-998.6%) $-0.67 (-1216.7%)
2022 $620.0m (7.8%) $-48.7m (55.2%) $51.7m (22.0%) -7.9% (58.4%) $-0.25 (62.7%)
2023 $660.7m (6.6%) $14.0m (128.6%) $92.7m (79.2%) 2.1% (126.9%) $0.07 (128.0%)
2024 $681.9m (3.2%) $30.0m (114.7%) $99.9m (7.8%) 4.4% (108.1%) $0.17 (142.9%)
2025 $756.0m (10.9%) $15.4m (-48.5%) $147.9m (48.0%) 2.0% (-53.6%) $0.09 (-47.1%)

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