Discounted Cash Flow

Thomson Reuters Corp. /Can/ Foreign

TRI · 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 $11.2b $3.1b $-1.6b 27.7% $4.14
2017 $11.3b (1.5%) $1.4b (-55.0%) $1.0b (163.3%) 12.3% (-55.6%) $1.94 (-53.1%)
2018 $5.5b (-51.5%) $3.9b (183.1%) $888.0m (-13.7%) 71.8% (483.2%)
2019 $5.9b (7.4%) $1.6b (-60.4%) $214.0m (-75.9%) 26.5% (-63.1%) $3.12
2020 $6.0b (1.3%) $1.1b (-28.3%) $1.5b (622.0%) 18.8% (-29.2%) $2.25 (-27.9%)
2021 $6.3b (6.1%) $5.7b (407.0%) $373.0m (-75.9%) 89.6% (378.0%) $11.53 (412.4%)
2022 $6.6b (4.4%) $1.3b (-76.5%) $700.0m (87.7%) 20.2% (-77.5%) $2.76 (-76.1%)
2023 $6.8b (2.5%) $2.7b (101.4%) $1.2b (78.3%) 39.7% (96.5%) $5.81 (110.5%)
2024 $7.3b (6.8%) $2.2b (-18.0%) $1.8b (46.6%) 30.4% (-23.2%) $4.89 (-15.8%)
2025 $7.5b (3.0%) $1.5b (-32.0%) $1.7b (-9.8%) 20.1% (-34.0%) $3.34 (-31.7%)

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