Discounted Cash Flow

Watts Water Technologies Inc.

WTS · 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 $1.4b $84.2m $102.1m 6.0% $2.45
2017 $1.5b (4.2%) $73.1m (-13.2%) $126.5m (23.9%) 5.0% (-16.7%) $2.12 (-13.5%)
2018 $1.6b (7.4%) $128.0m (75.1%) $133.5m (5.5%) 8.2% (63.0%) $3.73 (75.9%)
2019 $1.6b (2.3%) $131.5m (2.7%) $164.8m (23.4%) 8.2% (0.4%) $3.86 (3.5%)
2020 $1.5b (-5.7%) $114.3m (-13.1%) $185.0m (12.3%) 7.6% (-7.8%) $3.37 (-12.7%)
2021 $1.8b (19.9%) $165.7m (45.0%) $154.1m (-16.7%) 9.2% (20.9%) $4.90 (45.4%)
2022 $2.0b (9.4%) $251.5m (51.8%) $195.9m (27.1%) 12.7% (38.7%) $7.51 (53.3%)
2023 $2.1b (3.9%) $262.1m (4.2%) $281.1m (43.5%) 12.7% (0.3%) $7.85 (4.5%)
2024 $2.3b (9.5%) $291.2m (11.1%) $325.8m (15.9%) 12.9% (1.4%) $8.70 (10.8%)
2025 $2.4b (8.3%) $340.8m (17.0%) $356.3m (9.4%) 14.0% (8.1%) $10.17 (16.9%)

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