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

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 $657.2m $259.8m $280.6m 39.5% $2.52
2017 $784.7m (19.4%) $325.5m (25.3%) $383.8m (36.8%) 41.5% (4.9%) $3.12 (23.8%)
2018 $915.9m (16.7%) $435.8m (33.9%) $541.0m (40.9%) 47.6% (14.7%) $4.16 (33.3%)
2019 $1.0b (13.6%) $499.2m (14.5%) $717.8m (32.7%) 48.0% (0.8%) $4.86 (16.8%)
2020 $1.2b (12.2%) $506.6m (1.5%) $670.2m (-6.6%) 43.4% (-9.5%) $5.06 (4.1%)
2021 $1.5b (32.7%) $899.2m (77.5%) $-2.7b (-496.0%) 58.1% (33.7%) $8.72 (72.3%)
2022 $2.2b (43.1%) $1.1b (17.6%) $2.1b (179.3%) 47.7% (-17.8%) $9.74 (11.7%)
2023 $98.6m (-95.6%) $722.4m (-31.7%) $-442.9m (-121.0%) 732.7% (1435.8%) $6.55 (-32.8%)
2024 $68.0m (-31.0%) $787.7m (9.0%) $-2.8b (-538.0%) 1158.4% (58.1%) $7.14 (9.0%)
2025 $135.8m (99.7%) $969.0m (23.0%) $-2.8b (1.2%) 713.5% (-38.4%) $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