Discounted Cash Flow

Southern Co.

SO · 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 $19.9b $338.0m $-2.4b 1.7% $2.57
2017 $23.0b (15.8%) $1.1b (216.9%) $-1.0b (57.5%) 4.7% (173.7%) $0.84 (-67.3%)
2018 $23.5b (2.0%) $2.2b (107.8%) $-1.1b (-2.7%) 9.5% (103.7%) $2.18 (159.5%)
2019 $21.4b (-8.8%) $4.7b (112.9%) $-1.8b (-68.0%) 22.1% (133.5%) $4.53 (107.8%)
2020 $20.4b (-4.9%) $3.1b (-34.5%) $-745.0m (58.0%) 15.2% (-31.2%) $2.95 (-34.9%)
2021 $23.1b (13.4%) $2.3b (-25.6%) $-1.1b (-43.8%) 10.0% (-34.4%) $2.26 (-23.4%)
2022 $29.3b (26.7%) $3.4b (48.5%) $-1.6b (-51.4%) 11.7% (17.2%) $3.28 (45.1%)
2023 $25.3b (-13.8%) $3.8b (12.3%) $-1.5b (4.9%) 15.2% (30.2%) $3.64 (11.0%)
2024 $26.7b (5.8%) $4.3b (10.7%) $833.0m (154.0%) 15.9% (4.6%) $4.02 (10.4%)
2025 $29.6b (10.6%) $4.3b (1.9%) $-2.9b (-452.3%) 14.7% (-7.9%) $3.94 (-2.0%)

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