Discounted Cash Flow

Advanced Drainage Systems, Inc.

WMS · 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)
2017 $1.3b $33.0m $57.6m 2.6% $0.51
2018 $1.3b (5.8%) $62.0m (88.2%) $95.4m (65.8%) 4.7% (77.8%) $1.00 (96.1%)
2019 $1.4b (4.1%) $77.8m (25.4%) $108.3m (13.5%) 5.6% (20.5%) $1.23 (23.0%)
2020 $1.7b (20.9%) $-193.2m (-348.4%) $238.5m (120.3%) -11.5% (-305.5%) $-3.21 (-361.0%)
2021 $2.0b (18.5%) $224.2m (216.1%) $373.5m (56.6%) 11.3% (198.0%) $2.64 (182.2%)
2022 $2.8b (39.7%) $271.3m (21.0%) $125.8m (-66.3%) 9.8% (-13.4%) $3.22 (22.0%)
2023 $3.1b (10.9%) $507.1m (86.9%) $540.9m (329.9%) 16.5% (68.5%) $6.16 (91.3%)
2024 $2.9b (-6.4%) $509.9m (0.6%) $534.1m (-1.3%) 17.7% (7.4%) $6.52 (5.8%)
2025 $2.9b (1.0%) $450.2m (-11.7%) $368.5m (-31.0%) 15.5% (-12.6%) $5.81 (-10.9%)
2026 $3.1b (5.0%) $426.5m (-5.3%) $569.3m (54.5%) 14.0% (-9.8%) $5.48 (-5.7%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

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