10-Year Free Cash Flow Projections(showing years 1, 3, 5, 7, 10)
| Year | Year 1 | Year 3 | Year 5 | Year 7 | Year 10 |
|---|
| Revenue | $22.9B | $25.9B | $33.7B | $43.0B | $49.9B |
| EBIT | $4.3B | $4.9B | $6.3B | $8.1B | $9.4B |
| Tax | $215M | $243M | $317M | $405M | $470M |
| NOPAT | $4.1B | $4.6B | $6.0B | $7.7B | $8.9B |
| + Depreciation | $3.4B | $3.9B | $5.0B | $6.4B | $7.4B |
| - Capex | $4.2B | $4.8B | $6.3B | $8.0B | $9.3B |
| - Δ NWC | $99M | $166M | $507M | $442M | $98M |
| Free Cash Flow | $3.1B | $3.5B | $4.3B | $5.7B | $7.0B |
| Discount Factor | 0.918 | 0.772 | 0.650 | 0.548 | 0.423 |
| Present Value | $2.9B | $2.7B | $2.8B | $3.1B | $3.0B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.35% | 1.85% | 2.35% | 2.85% | 3.35% |
|---|
| 6.99% | $170.88 | $183.55 | $198.96 | $218.08 | $242.46 |
| 7.99% | $142.99 | $151.27 | $161.03 | $172.68 | $186.85 |
| 8.99% | $123.18 | $128.88 | $135.44 | $143.06 | $152.04 |
| 9.99% | $108.58 | $112.65 | $117.26 | $122.51 | $128.55 |
| 10.99% | $97.51 | $100.50 | $103.85 | $107.60 | $111.84 |
How to read: This table shows how the valuation changes with different WACC (discount rate) and terminal growth rate assumptions. Green = undervalued, Red = overvalued.
Key Assumptions & Drivers✓ Using Analyst Consensus Estimates• Utilities Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth4.52%
Year 3 Revenue Growth6.84%
Year 5 Revenue Growth17.74%
Year 7 Revenue Growth11.44%
Year 10 Revenue Growth2.00%
Terminal Growth Rate2.35%
Margin & Efficiency
EBIT Margin18.82%
Tax Rate5.00%
Capex / Revenue18.57%
NWC / Revenue10.00%
Key Drivers: Revenue growth, operating margin expansion, capex efficiency, and working capital management are the primary drivers of cash flow generation. Terminal value assumptions significantly impact final valuation.
Institutional-Grade Methodology
Actual Company Data: Revenue, EBIT, Capex, NWC, Tax Rate, Interest Expense, Beta
Market Assumptions: Risk-free: 4.5% (10Y), MRP: 4.5% (Damodaran 2026), Exit: 18x EV/EBITDA (S&P 500: 22x P/E)
This DCF model is for informational purposes only. Projections are based on assumptions that may not materialize. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.