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 | $17.0B | $17.3B | $18.8B | $19.8B | $21.3B |
| EBIT | $5.6B | $5.7B | $6.2B | $6.5B | $7.0B |
| Tax | $1.1B | $1.1B | $1.2B | $1.3B | $1.4B |
| NOPAT | $4.5B | $4.6B | $5.0B | $5.3B | $5.7B |
| + Depreciation | -- | -- | -- | -- | -- |
| - Capex | -- | -- | -- | -- | -- |
| - Δ NWC | -$35M | -$2M | $41M | $43M | $46M |
| Free Cash Flow | $4.6B | $4.6B | $5.0B | $5.2B | $5.6B |
| Discount Factor | 0.936 | 0.821 | 0.719 | 0.631 | 0.518 |
| Present Value | $4.3B | $3.8B | $3.6B | $3.3B | $2.9B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|
| 4.81% | $220.73 | $239.43 | $266.22 | $285.09 | $274.01 |
| 5.81% | $181.94 | $191.66 | $204.32 | $221.49 | $246.09 |
| 6.81% | $155.99 | $161.73 | $168.80 | $177.73 | $189.37 |
| 7.81% | $136.97 | $140.65 | $145.02 | $150.30 | $156.81 |
| 8.81% | $122.20 | $124.70 | $127.59 | $130.97 | $134.99 |
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• Financial Services Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth-2.28%
Year 3 Revenue Growth-0.12%
Year 5 Revenue Growth2.50%
Year 7 Revenue Growth2.50%
Year 10 Revenue Growth2.50%
Terminal Growth Rate2.50%
Margin & Efficiency
Current EBIT Margin33.06%
Tax Rate19.57%
Historical Capex / Rev0.00%
NWC / Revenue8.91%
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: 12x EV/EBITDA (Financial Services sector)
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.