Discounted Cash Flow

Progressive Corp./Oh/

PGR · 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 $23.4b $1.0b $2.5b 4.4% $1.77
2017 $26.8b (14.5%) $1.6b (54.4%) $3.6b (44.8%) 5.9% (34.9%) $2.74 (54.8%)
2018 $32.0b (19.2%) $2.6b (64.3%) $6.0b (67.1%) 8.2% (37.9%) $4.45 (62.4%)
2019 $39.0b (22.0%) $4.0b (51.8%) $5.9b (-2.0%) 10.2% (24.4%) $6.75 (51.7%)
2020 $42.7b (9.3%) $5.7b (43.7%) $6.7b (13.3%) 13.4% (31.4%) $9.71 (43.9%)
2021 $47.7b (11.8%) $3.4b (-41.3%) $7.5b (12.5%) 7.0% (-47.5%) $5.69 (-41.4%)
2022 $49.6b (4.0%) $721.5m (-78.5%) $6.6b (-12.8%) 1.5% (-79.3%) $1.19 (-79.1%)
2023 $62.1b (25.2%) $3.9b (440.9%) $10.4b (58.5%) 6.3% (332.0%) $6.61 (455.5%)
2024 $75.4b (21.4%) $8.5b (117.3%) $14.8b (42.8%) 11.3% (79.1%) $14.45 (118.6%)
2025 $87.7b (16.3%) $11.3b (33.3%) $17.2b (15.9%) 12.9% (14.6%) $19.29 (33.5%)

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