Discounted Cash Flow

Msci Inc.

MSCI · 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 $1.2b $260.9m $402.5m 22.7% $2.72
2017 $1.3b (10.7%) $304.0m (16.5%) $371.0m (-7.8%) 23.9% (5.2%) $3.36 (23.5%)
2018 $1.4b (12.5%) $507.9m (67.1%) $582.5m (57.0%) 35.4% (48.5%) $5.83 (73.5%)
2019 $1.6b (8.6%) $563.6m (11.0%) $680.4m (16.8%) 36.2% (2.2%) $6.66 (14.2%)
2020 $1.7b (8.8%) $601.8m (6.8%) $789.3m (16.0%) 35.5% (-1.9%) $7.19 (8.0%)
2021 $2.0b (20.5%) $726.0m (20.6%) $922.6m (16.9%) 35.5% (0.1%) $8.80 (22.4%)
2022 $2.2b (10.0%) $870.6m (19.9%) $1.1b (17.3%) 38.7% (9.0%) $10.78 (22.5%)
2023 $2.5b (12.5%) $1.1b (31.9%) $1.2b (12.2%) 45.4% (17.3%) $14.45 (34.0%)
2024 $2.9b (12.9%) $1.1b (-3.4%) $1.5b (21.0%) 38.8% (-14.5%) $14.09 (-2.5%)
2025 $3.1b (9.7%) $1.2b (8.4%) $1.5b (5.5%) 38.4% (-1.2%) $15.72 (11.6%)

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