Discounted Cash Flow

Safety Insurance Group Inc.

SAFT · 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 $819.8m $64.6m $93.9m 7.9% $4.29
2017 $839.1m (2.4%) $62.4m (-3.4%) $76.1m (-19.0%) 7.4% (-5.6%) $4.13 (-3.7%)
2018 $836.5m (-0.3%) $83.2m (33.4%) $116.5m (53.1%) 9.9% (33.8%) $5.48 (32.7%)
2019 $877.8m (4.9%) $99.6m (19.7%) $102.9m (-11.7%) 11.3% (14.1%) $6.52 (19.0%)
2020 $846.2m (-3.6%) $138.2m (38.8%) $99.5m (-3.3%) 16.3% (43.9%) $9.25 (41.9%)
2021 $884.9m (4.6%) $130.7m (-5.4%) $133.2m (33.8%) 14.8% (-9.6%) $8.85 (-4.3%)
2022 $797.6m (-9.9%) $46.6m (-64.4%) $42.2m (-68.3%) 5.8% (-60.5%) $3.17 (-64.2%)
2023 $931.0m (16.7%) $18.9m (-59.5%) $50.3m (19.2%) 2.0% (-65.3%) $1.28 (-59.6%)
2024 $1.1b (20.3%) $70.7m (274.7%) $124.3m (147.0%) 6.3% (211.5%) $4.79 (274.2%)
2025 $1.3b (12.8%) $99.3m (40.3%) $192.0m (54.4%) 7.9% (24.4%) $6.72 (40.3%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

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