Discounted Cash Flow

Royal Bank of Canada Foreign

RY · 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)
2017 $40.7b $11.4b $37.7b 28.1% $7.59
2018 $42.6b (4.7%) $12.4b (8.5%) $17.5b (-53.7%) 29.1% (3.6%) $8.39 (10.5%)
2019 $46.0b (8.0%) $12.9b (3.7%) $14.3b (-18.4%) 28.0% (-4.0%) $8.78 (4.6%)
2020 $47.2b (2.6%) $11.4b (-11.1%) $11.4b (-19.9%) 24.2% (-13.3%) $7.84 (-10.7%)
2021 $49.7b (5.3%) $16.0b (40.3%) $61.0b (434.0%) 32.3% (33.2%) $11.08 (41.3%)
2022 $49.0b (-1.4%) $15.8b (-1.5%) $19.4b (-68.2%) 32.2% (-0.1%) $11.08 (0.0%)
2023 $56.1b (14.6%) $14.9b (-5.9%) $23.3b (20.1%) 26.5% (-17.9%) $10.51 (-5.1%)
2024 $57.3b (2.2%) $16.2b (9.2%) $20.9b (-10.7%) 28.3% (6.9%) $11.27 (7.2%)
2025 $66.6b (16.1%) $20.4b (25.5%) $53.0b (154.0%) 30.6% (8.0%) $14.10 (25.1%)

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