Discounted Cash Flow

PPL Corp.

PPL · 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
Dividends

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 $7.5b $1.9b $2.6b 25.3% $1.52
2017 $7.4b (-0.9%) $1.1b (-40.7%) $2.1b (-19.5%) 15.1% (-40.1%) $1.58 (3.9%)
2018 $7.8b (4.5%) $1.8b (62.0%) $2.5b (17.8%) 23.5% (54.9%) $2.59 (63.9%)
2019 $7.8b (-0.2%) $1.7b (-4.4%) $2.1b (-15.7%) 22.5% (-4.2%) $2.39 (-7.7%)
2020 $7.6b (-2.1%) $1.5b (-15.9%) $2.4b (16.3%) 19.3% (-14.1%) $1.91 (-20.1%)
2021 $5.8b (-24.0%) $-1.5b (-200.7%) $2.0b (-16.6%) -25.6% (-232.5%) $-1.93 (-201.0%)
2022 $7.9b (36.6%) $756.0m (151.1%) $1.5b (-27.9%) 9.6% (137.4%) $1.03 (153.4%)
2023 $8.3b (5.2%) $740.0m (-2.1%) $1.5b (5.3%) 8.9% (-6.9%) $1.00 (-2.9%)
2024 $8.4b (1.6%) $888.0m (20.0%) $2.0b (28.9%) 10.5% (18.1%) $1.20 (20.0%)
2025 $9.2b (8.6%) $1.2b (33.0%) $2.0b (0.9%) 12.9% (22.5%) $1.60 (33.3%)

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