Discounted Cash Flow

Prudential Financial Inc.

PRU · 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 $58.8b $4.4b $14.8b 7.4% $9.85
2017 $59.7b (1.5%) $7.9b (80.0%) $13.4b (-9.0%) 13.2% (77.3%) $18.19 (84.7%)
2018 $63.0b (5.5%) $4.1b (-48.2%) $21.7b (61.1%) 6.5% (-50.9%) $9.64 (-47.0%)
2019 $64.8b (2.9%) $4.2b (2.7%) $19.6b (-9.4%) 6.5% (-0.1%) $10.23 (6.1%)
2020 $57.0b (-12.0%) $-374.0m (-108.9%) $8.4b (-57.4%) -0.7% (-110.2%) $-1.00 (-109.8%)
2021 $70.9b (24.4%) $7.7b (2165.2%) $9.8b (17.3%) 10.9% (1760.5%) $19.65 (2065.0%)
2022 $60.0b (-15.3%) $-1.4b (-118.6%) $5.2b (-47.4%) -2.4% (-122.0%) $-3.93 (-120.0%)
2023 $54.0b (-10.1%) $2.5b (273.0%) $6.5b (26.2%) 4.6% (292.5%) $6.76 (272.0%)
2024 $70.4b (30.4%) $2.7b (9.6%) $8.5b (30.6%) 3.9% (-16.0%) $7.54 (11.5%)
2025 $60.8b (-13.7%) $3.6b (31.1%) $6.3b (-26.2%) 5.9% (51.9%) $10.05 (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