Discounted Cash Flow

Toll Brothers, Inc.

TOL · 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 $5.2b $382.1m $120.3m 7.4% $2.27
2017 $5.8b (12.5%) $535.5m (40.1%) $930.8m (673.5%) 9.2% (24.6%) $3.30 (45.4%)
2018 $7.1b (22.8%) $748.2m (39.7%) $574.2m (-38.3%) 10.5% (13.7%) $4.92 (49.1%)
2019 $7.2b (1.1%) $590.0m (-21.1%) $350.7m (-38.9%) 8.2% (-22.0%) $4.07 (-17.3%)
2020 $7.1b (-2.0%) $446.6m (-24.3%) $898.6m (156.2%) 6.3% (-22.7%) $3.43 (-15.7%)
2021 $8.8b (24.2%) $833.6m (86.7%) $1.2b (37.6%) 9.5% (50.3%) $6.72 (95.9%)
2022 $10.3b (16.9%) $1.3b (54.3%) $915.1m (-26.0%) 12.5% (32.0%) $11.02 (64.0%)
2023 $10.0b (-2.7%) $1.4b (6.7%) $1.2b (30.4%) 13.7% (9.6%) $12.47 (13.2%)
2024 $10.8b (8.5%) $1.6b (14.5%) $936.5m (-21.5%) 14.5% (5.5%) $15.16 (21.6%)
2025 $11.0b (1.1%) $1.3b (-14.3%) $1.0b (9.6%) 12.3% (-15.2%) $13.60 (-10.3%)

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