Discounted Cash Flow

Western Alliance Bancorporation

WAL · 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
Dividends

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 $700.1m $259.8m $280.6m 37.1% $2.52
2017 $830.0m (18.6%) $325.5m (25.3%) $383.8m (36.8%) 39.2% (5.7%) $3.12 (23.8%)
2018 $915.9m (10.3%) $435.8m (33.9%) $541.0m (40.9%) 47.6% (21.3%) $4.16 (33.3%)
2019 $1.1b (20.7%) $499.2m (14.5%) $717.8m (32.7%) 45.2% (-5.1%) $4.86 (16.8%)
2020 $1.2b (12.0%) $506.6m (1.5%) $670.2m (-6.6%) 40.9% (-9.4%) $5.06 (4.1%)
2021 $2.0b (57.8%) $899.2m (77.5%) $-2.7b (-496.0%) 46.0% (12.5%) $8.72 (72.3%)
2022 $2.5b (30.1%) $1.1b (17.6%) $2.1b (179.3%) 41.6% (-9.6%) $9.74 (11.7%)
2023 $2.6b (3.1%) $722.4m (-31.7%) $-442.9m (-121.0%) 27.6% (-33.7%) $6.55 (-32.8%)
2024 $3.2b (20.7%) $787.7m (9.0%) $-2.8b (-538.0%) 24.9% (-9.7%) $7.14 (9.0%)
2025 $3.5b (12.0%) $969.0m (23.0%) $-2.8b (1.2%) 27.3% (9.8%) $8.79 (23.1%)

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