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Intrinsic value of Discover Financial Services (DFS)

Previous Close$102.35
Intrinsic Value
Upside potential
Previous Close
$102.35
* Our model cannot be used “out of the box” for the valuation of this stock. You can still do your own valuation by changing the valuation input parameters.

VALUATION INPUT DATA (original, your and others' valuations)

ParameterOrig.Your
Date of valuation (DoV)  
Intrinsic value (IV) at DoV, $/sh  
IV at current val. algorithm, $/sh154.64 

The original valuation is based on fiscal year data as of 2021-12-31 and quarterly data as of 2022-03-31.

Registered users can save their valuation input data

  1. Annual
  2. Quarterly YoY
  3. Quarterly QoQ

Annual revenue growth rates, % (past and forecasted)

NOTE: The bar chart shows historic and forecasted yearly revenue growth rates. Its purpose is to help you in determining what initial revenue rate you want to base your stock valuation on. Please make sure that you are confident in the value you select - for most stocks it is by far the most important parameter in valuation.

Company description

Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. It operates in two segments, Direct Banking and Payment Services. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home equity loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit. The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; Diners Club International, a payments network that issues Diners Club branded charge cards and provides card acceptance services; and Discover Network that processes transactions for Discover-branded credit and debit cards, as well as provides payment transaction processing and settlement services. The company was founded in 1985 and is based in Riverwoods, Illinois.

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2021(a)2022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046

INCOME STATEMENT

Revenue growth rate, %5.2NaN
Revenue, $11664NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $m4600NaN
Operating income, $m7064NaN
EBITDA, $m7300NaN
Interest expense (income), $mNaN
Earnings before tax, $m6966NaN
Tax expense, $m1615NaN
Net income, $m5351NaN

BALANCE SHEET

Cash and short-term investments, $m11332NaN
Total assets, $m110610NaN
Adjusted assets (=assets-cash), $m99278NaN
Average production assets, $m1308NaN
Working capital, $m19837NaN
Total debt, $m20227NaN
Total liabilities, $m97202NaN
Total equity, $m13408NaN
Debt-to-equity ratio1.509NaN
Adjusted equity ratio0.091NaN

CASH FLOW

Net income, $m5351NaN
Depreciation, amort., depletion, $m236NaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $m6019NaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $m-194NaN
Free cash flow, $m6213NaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $m19837
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
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