Discounted Cash Flow

Moodys Corp. /De/

MCO · 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 $266.6m $1.1b 7.4% $1.38
2017 $4.2b (16.6%) $1.0b (275.3%) $656.9m (-40.9%) 23.8% (221.8%) $5.24 (279.7%)
2018 $4.4b (5.7%) $1.3b (30.9%) $1.4b (108.7%) 29.5% (23.9%) $6.84 (30.5%)
2019 $4.8b (8.7%) $1.4b (8.6%) $1.6b (17.2%) 29.4% (-0.1%) $7.51 (9.8%)
2020 $5.4b (11.2%) $1.8b (25.0%) $2.0b (27.2%) 33.1% (12.4%) $9.48 (26.2%)
2021 $6.2b (15.8%) $2.2b (24.5%) $1.9b (-8.7%) 35.6% (7.6%) $11.88 (25.3%)
2022 $5.5b (-12.1%) $1.4b (-37.9%) $1.2b (-36.2%) 25.1% (-29.4%) $7.47 (-37.1%)
2023 $5.9b (8.2%) $1.6b (17.0%) $1.9b (57.9%) 27.2% (8.1%) $8.77 (17.4%)
2024 $7.1b (19.8%) $2.1b (28.1%) $2.5b (34.1%) 29.0% (6.9%) $11.32 (29.1%)
2025 $7.7b (8.9%) $2.5b (19.5%) $2.6b (2.1%) 31.9% (9.7%) $13.73 (21.3%)

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