Discounted Cash Flow

Smith & Nephew Plc. ADR

SNN · 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 $4.7b $1.1b $481.0m 22.7% $0.88
2017 $4.8b (2.1%) $879.0m (-17.2%) $1.0b (115.8%) 18.4% (-18.9%) $0.88 (-0.3%)
2018 $4.9b (2.9%) $781.0m (-11.1%) $883.0m (-14.9%) 15.9% (-13.7%) $0.76 (-13.4%)
2019 $5.1b (4.8%) $743.0m (-4.9%) $1.1b (25.1%) 14.5% (-9.2%) $0.69 (-9.7%)
2020 $4.6b (-11.2%) $246.0m (-66.9%) $919.0m (-16.8%) 5.4% (-62.7%) $51.30 (7378.1%)
2021 $5.2b (14.3%) $586.0m (138.2%) $469.0m (-49.0%) 11.2% (108.4%) $59.80 (16.6%)
2022 $5.2b (0.1%) $235.0m (-59.9%) $310.0m (-33.9%) 4.5% (-59.9%) $0.26 (-99.6%)
2023 $5.5b (6.4%) $290.0m (23.4%) $181.0m (-41.6%) 5.2% (16.0%) $0.30 (18.4%)
2024 $5.8b (4.7%) $498.0m (71.7%) $606.0m (234.8%) 8.6% (64.0%) $0.47 (56.3%)
2025 $6.2b (6.1%) $779.0m (56.4%) $783.0m (29.2%) 12.6% (47.4%) $0.72 (52.8%)

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