Discounted Cash Flow

Textron Inc.

TXT · 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 $13.7b $962.0m $566.0m 7.0% $3.55
2017 $14.1b (3.1%) $307.0m (-68.1%) $530.0m (-6.4%) 2.2% (-69.0%) $1.15 (-67.6%)
2018 $14.0b (-1.1%) $1.2b (298.0%) $738.0m (39.2%) 8.7% (302.5%) $4.88 (324.3%)
2019 $13.6b (-2.4%) $815.0m (-33.3%) $675.0m (-8.5%) 6.0% (-31.6%)
2020 $11.7b (-14.5%) $309.0m (-62.1%) $451.0m (-33.2%) 2.7% (-55.6%) $3.50
2021 $11.7b (0.0%) $309.0m (0.0%) $393.0m (-12.9%) 2.7% (0.0%) $1.35 (-61.4%)
2022 $12.9b (10.5%) $861.0m (178.6%) $1.1b (189.1%) 6.7% (152.3%) $4.05 (200.0%)
2023 $13.7b (6.3%) $921.0m (7.0%) $865.0m (-23.9%) 6.7% (0.6%) $4.61 (13.8%)
2024 $13.7b (0.1%) $824.0m (-10.5%) $651.0m (-24.7%) 6.0% (-10.7%) $4.38 (-5.0%)
2025 $14.8b (8.0%) $921.0m (11.8%) $930.0m (42.9%) 6.2% (3.5%) $5.15 (17.6%)

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