Discounted Cash Flow

Essential Utilities, Inc.

WTRG · 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 $819.9m $234.2m $12.8m 28.6% $1.32
2017 $809.5m (-1.3%) $239.7m (2.4%) $-96.8m (-856.5%) 29.6% (3.7%) $1.35 (2.3%)
2018 $838.1m (3.5%) $192.0m (-19.9%) $-127.2m (-31.5%) 22.9% (-22.6%) $1.08 (-20.0%)
2019 $889.7m (6.2%) $224.5m (17.0%) $277.9m (318.4%) 25.2% (10.2%) $1.04 (-3.7%)
2020 $1.5b (64.4%) $284.8m (26.9%) $409.5m (47.3%) 19.5% (-22.8%) $1.14 (9.6%)
2021 $1.9b (28.4%) $431.6m (51.5%) $548.7m (34.0%) 23.0% (18.0%) $1.68 (47.4%)
2022 $2.3b (21.8%) $465.2m (7.8%) $498.2m (-9.2%) 20.3% (-11.5%) $1.77 (5.4%)
2023 $2.1b (-10.2%) $498.2m (7.1%) $830.8m (66.8%) 24.3% (19.3%) $1.86 (5.1%)
2024 $2.1b (1.6%) $595.3m (19.5%) $635.0m (-23.6%) 28.5% (17.6%) $2.17 (16.7%)
2025 $2.5b (18.6%) $616.4m (3.5%) $865.5m (36.3%) 24.9% (-12.7%) $2.20 (1.4%)

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