Discounted Cash Flow

Xylem Inc.

XYL · 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 $3.8b $260.0m $373.0m 6.9% $1.45
2017 $4.7b (24.8%) $331.0m (27.3%) $675.0m (81.0%) 7.0% (2.0%) $1.84 (26.9%)
2018 $5.2b (10.6%) $549.0m (65.9%) $575.0m (-14.8%) 10.5% (49.9%) $3.05 (65.8%)
2019 $5.2b (0.8%) $401.0m (-27.0%) $832.0m (44.7%) 7.6% (-27.5%) $2.23 (-26.9%)
2020 $4.9b (-7.1%) $254.0m (-36.7%) $624.0m (-25.0%) 5.2% (-31.8%) $1.41 (-36.8%)
2021 $5.2b (6.5%) $427.0m (68.1%) $538.0m (-13.8%) 8.2% (57.8%) $2.37 (68.1%)
2022 $5.5b (6.3%) $355.0m (-16.9%) $585.0m (8.7%) 6.4% (-21.8%) $1.97 (-16.9%)
2023 $7.4b (33.4%) $609.0m (71.5%) $836.0m (42.9%) 8.3% (28.6%) $2.81 (42.6%)
2024 $8.6b (16.3%) $890.0m (46.1%) $1.3b (49.8%) 10.4% (25.7%) $3.67 (30.6%)
2025 $9.0b (5.5%) $957.0m (7.5%) $1.2b (-4.8%) 10.6% (1.9%) $3.93 (7.1%)

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