Discounted Cash Flow

Zimmer Biomet Holdings, Inc.

ZBH · Based on 10 years of SEC filings · Converted from JPY to USD

⚠ Cash flow predictability 56/100 (moderate) — FCF YoY std dev 49%, net income 82% (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)
2016 $49.9m $2.0m $9.4m 4.0% $1.53
2017 $50.8m (1.8%) $11.8m (492.9%) $9.3m (-1.5%) 23.2% (482.3%) $8.98 (486.9%)
2018 $51.5m (1.4%) $-2.5m (-120.9%) $10.3m (11.1%) -4.8% (-120.6%) $-1.86 (-120.7%)
2019 $51.8m (0.6%) $7.3m (398.4%) $8.9m (-13.0%) 14.2% (396.6%) $5.52 (396.8%)
2020 $45.6m (-12.0%) $-901.5k (-112.3%) $7.1m (-21.2%) -2.0% (-113.9%) $-0.67 (-112.1%)
2021 $50.9m (11.6%) $2.6m (389.1%) $8.6m (22.1%) 5.1% (359.2%) $1.93 (388.1%)
2022 $45.0m (-11.4%) $1.5m (-42.4%) $-1.7m (-119.5%) 3.3% (-34.9%) $1.10 (-43.0%)
2023 $48.0m (6.5%) $6.6m (342.5%) $-1.9m (-12.2%) 13.8% (315.3%) $4.91 (346.4%)
2024 $49.8m (3.8%) $5.9m (-11.7%) $8.4m (545.1%) 11.8% (-15.0%) $4.45 (-9.4%)
2025 $53.4m (7.2%) $4.6m (-22.0%) $9.6m (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:

SEC filings report in JPY. 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