Discounted Cash Flow
Waterdrop Inc. ADR
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Audit / VIE / HFCA: Chinese ADR (VIE contractual structure, HFCA Act): the PCAOB must inspect the China-based auditor (e.g. Deloitte/EY China) or the ADRs can be delisted; dividends must be repatriated through the WFOE/VIE and can be blocked. The audit relies on contractual VIE control, not equity, adding structural risk.
Sourced live via DEF 14A beneficial_ownership (edgartools proxy) for US filers and 20-F risk_factors (“controls X% of voting power” + VIE/HFCA) for foreign ADRs — cached 12h. A concentrated holder can overrule the DCF’s minority-basis assumptions on dividends, issuance, and delisting.
Average annual growth rates
| Metric | 10-Year | 5-Year | 3-Year |
|---|---|---|---|
| Sales | — | — | — |
| Free Cash Flow | — | — | — |
| Average (FCF & NI) | — | — | — |
| Net Income | — | — | — |
| Dividends | — | — | — |
Endpoint CAGR (better for long term trend)
| Metric | 10-Year | 5-Year | 3-Year |
|---|---|---|---|
| Sales | — | — | — |
| Free Cash Flow | — | — | — |
| Average (FCF & NI) | — | — | — |
| Net Income | — | — | — |
Projected growth rate
—
Historical inputs (10 fiscal years)
| YEAR | Sales | Net Income | Free Cash Flow | Net Margin | EPS (diluted) |
|---|---|---|---|---|---|
| 2019 | $225.3m | — | $-81.4m | — | $-0.38 |
| 2020 | $451.4m (100.4%) | $-165.1m | $-119.8m (-47.2%) | -36.6% | $-0.94 (-147.4%) |
| 2021 | $75.0m (-83.4%) | $0 (100.0%) | $-164.3m (-37.1%) | 0.0% (100.0%) | $-0.58 (38.3%) |
| 2022 | $60.6m (-19.3%) | $0 | $113.9m (169.3%) | 0.0% | $0.02 (103.4%) |
| 2023 | $55.2m (-8.8%) | $-527.1k | $60.3m (-47.0%) | -1.0% | $0.01 (-50.0%) |
| 2024 | $56.6m (2.5%) | $-2.5m (-370.2%) | $-2.5m (-104.1%) | -4.4% (-358.8%) | $0.01 (0.0%) |
| 2025 | $84.8m (49.8%) | $-578.3k (76.7%) | $35.7m (1541.5%) | -0.7% (84.4%) | $0.02 (100.0%) |
Base FCF: — (latest fiscal year)
Discount rate: % —
Terminal growth: —
Projection period: — years
Alt A decline yrs:
Alt B total yrs:
SEC filings report in CNY. 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): —
Net debt deduction: —
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.