Discounted Cash Flow

Descartes Systems Group Inc. Foreign

DSGX · Based on 10 years of SEC filings · Converted from CAD to USD

Cash flow predictability 91/100 (stable) — FCF YoY std dev 13%, net income 17% (full history)

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income
Dividends

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)
2017 $147.5m $17.3m $49.0m 11.7% $0.31
2018 $171.9m (16.5%) $19.5m (12.8%) $48.5m (-0.9%) 11.3% (-3.2%) $0.35 (12.9%)
2019 $199.2m (15.9%) $22.6m (16.4%) $52.7m (8.6%) 11.4% (0.4%) $0.41 (17.1%)
2020 $235.8m (18.4%) $26.8m (18.3%) $71.9m (36.4%) 11.4% (-0.1%) $0.45 (9.8%)
2021 $252.4m (7.0%) $37.7m (40.8%) $92.3m (28.3%) 14.9% (31.6%) $0.62 (37.8%)
2022 $307.4m (21.8%) $62.4m (65.6%) $124.0m (34.4%) 20.3% (36.0%) $1.02 (64.5%)
2023 $351.8m (14.4%) $74.0m (18.5%) $134.9m (8.8%) 21.0% (3.5%) $1.21 (18.6%)
2024 $414.7m (17.9%) $83.9m (13.4%) $146.3m (8.5%) 20.2% (-3.8%) $1.36 (12.4%)
2025 $471.2m (13.6%) $103.7m (23.6%) $153.8m (5.2%) 22.0% (8.8%) $1.68 (23.5%)
2026 $527.6m (12.0%) $118.5m (14.3%) $188.6m (22.6%) 22.5% (2.1%) $1.91 (13.7%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

SEC filings report in CAD. Values above are converted to USD for comparison with the US-listed share price.

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