Woodward’s DCF Stock Analysis

Here’s my assumptions for $WWD ( ▼ 0.57% ) :

Risk Free Rate (10 Years Interest Rate Swap): 4.13%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 2%

Last 24 Months Beta: 1.17

Historical Data

Revenue growth in the last 10 years (CAGR): 5.01%

Earnings growth in the last 10 years (CAGR): 7.47%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 29.03%

Future Assumptions

End of Year FCF growth: 15%

Growth until end of 2026: 25%

Growth until end of 2034: 18%

Perpetual growth: 3.1%

Net Debt: 0.576B

Outstanding Stock Options Present Value Assumption: $0.611B

Restricted Stock Units Present Value Assumption: $0.97B

Stock Valuation based on these assumptions: $376

Last update 07/24/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Woodward Inc. (WWD) and I don’t plan to add a position in the coming days.