Discounted Cash Flow

Webster Financial Corp.

WBS · 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 $983.0m $207.1m $357.4m 21.1% $2.17
2017 $1.1b (7.4%) $255.4m (23.3%) $416.4m (16.5%) 24.2% (14.8%) $2.68 (23.5%)
2018 $1.2b (12.6%) $360.4m (41.1%) $436.4m (4.8%) 30.3% (25.3%) $3.83 (42.9%)
2019 $1.2b (4.3%) $382.7m (6.2%) $278.1m (-36.3%) 30.9% (1.8%) $4.07 (6.3%)
2020 $1.2b (-5.1%) $220.6m (-42.4%) $359.3m (29.2%) 18.7% (-39.2%) $2.35 (-42.3%)
2021 $1.2b (4.1%) $408.9m (85.3%) $672.0m (87.0%) 33.4% (78.1%) $4.43 (88.5%)
2022 $2.5b (102.1%) $644.3m (57.6%) $1.3b (94.5%) 26.0% (-22.0%) $3.72 (-16.0%)
2023 $2.7b (7.1%) $867.8m (34.7%) $938.3m (-28.2%) 32.7% (25.7%) $4.91 (32.0%)
2024 $2.6b (-2.3%) $768.7m (-11.4%) $1.4b (45.8%) 29.7% (-9.3%) $4.38 (-10.8%)
2025 $2.9b (11.9%) $1.0b (30.5%) $1.0b (-26.3%) 34.6% (16.5%) $5.91 (34.9%)

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