Discounted Cash Flow

Zimmer Biomet Holdings, Inc.

ZBH · 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 $7.7b $305.9m $1.4b 4.0% $1.53
2017 $7.8b (1.8%) $1.8b (492.9%) $1.4b (-1.5%) 23.2% (482.3%) $8.98 (486.9%)
2018 $7.9b (1.4%) $-379.2m (-120.9%) $1.6b (11.1%) -4.8% (-120.6%) $-1.86 (-120.7%)
2019 $8.0b (0.6%) $1.1b (398.4%) $1.4b (-13.0%) 14.2% (396.6%) $5.52 (396.8%)
2020 $7.0b (-12.0%) $-138.9m (-112.3%) $1.1b (-21.2%) -2.0% (-113.9%) $-0.67 (-112.1%)
2021 $7.8b (11.6%) $401.6m (389.1%) $1.3b (22.1%) 5.1% (359.2%) $1.93 (388.1%)
2022 $6.9b (-11.4%) $231.4m (-42.4%) $-259.4m (-119.5%) 3.3% (-34.9%) $1.10 (-43.0%)
2023 $7.4b (6.5%) $1.0b (342.5%) $-291.1m (-12.2%) 13.8% (315.3%) $4.91 (346.4%)
2024 $7.7b (3.8%) $903.8m (-11.7%) $1.3b (545.1%) 11.8% (-15.0%) $4.45 (-9.4%)
2025 $8.2b (7.2%) $705.1m (-22.0%) $1.5b (13.7%) 8.6% (-27.2%) $3.56 (-20.0%)

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