Discounted Cash Flow

Western Union Co.

WU · 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 $5.4b $253.2m $973.1m 4.7% $0.52
2017 $5.5b (1.9%) $-557.1m (-320.0%) $666.7m (-31.5%) -10.1% (-316.0%) $-1.19 (-328.8%)
2018 $5.4b (-2.6%) $851.9m (252.9%) $684.6m (2.7%) 15.8% (256.9%) $1.89 (258.8%)
2019 $5.0b (-6.5%) $1.1b (24.2%) $866.5m (26.6%) 21.0% (32.9%) $2.47 (30.7%)
2020 $4.6b (-8.1%) $744.3m (-29.7%) $841.0m (-2.9%) 16.1% (-23.5%) $1.81 (-26.7%)
2021 $4.9b (5.2%) $805.8m (8.3%) $1.0b (19.8%) 16.6% (2.9%) $1.98 (9.4%)
2022 $4.3b (-12.6%) $910.6m (13.0%) $549.7m (-45.4%) 21.4% (29.2%) $2.35 (18.7%)
2023 $4.2b (-2.3%) $626.0m (-31.3%) $760.2m (38.3%) 15.1% (-29.7%) $1.69 (-28.1%)
2024 $4.0b (-3.1%) $934.2m (49.2%) $368.9m (-51.5%) 23.2% (54.1%) $2.75 (62.7%)
2025 $3.9b (-3.7%) $499.6m (-46.5%) $505.2m (36.9%) 12.9% (-44.5%) $1.53 (-44.4%)

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