Discounted Cash Flow

Schwab Charles Corp.

SCHW · 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 $7.5b $1.9b $2.3b 25.3% $1.32
2017 $8.6b (15.2%) $2.4b (24.6%) $863.0m (-62.7%) 27.3% (8.1%) $1.63 (23.5%)
2018 $10.1b (17.6%) $3.5b (49.0%) $11.9b (1277.3%) 34.6% (26.7%) $2.47 (51.5%)
2019 $10.7b (5.8%) $3.7b (5.6%) $8.6b (-27.5%) 34.5% (-0.2%) $2.69 (8.9%)
2020 $11.7b (9.0%) $3.3b (-10.9%) $6.2b (-27.8%) 28.2% (-18.3%) $2.13 (-20.8%)
2021 $18.5b (58.4%) $5.9b (77.5%) $1.2b (-80.7%) 31.6% (12.0%) $2.84 (33.3%)
2022 $20.8b (12.1%) $7.2b (22.7%) $1.1b (-9.7%) 34.6% (9.4%) $3.52 (23.9%)
2023 $18.8b (-9.3%) $5.1b (-29.5%) $18.9b (1639.1%) 26.9% (-22.2%) $2.55 (-27.6%)
2024 $19.6b (4.1%) $5.9b (17.3%) $2.0b (-89.1%) 30.3% (12.7%) $3.00 (17.6%)
2025 $23.9b (22.0%) $8.9b (49.0%) $8.8b (327.5%) 37.0% (22.1%) $4.67 (55.7%)

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