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 | $17.2B | $17.0B | $18.8B | $19.8B | $21.3B |
| EBIT | $4.7B | $4.7B | $5.2B | $5.5B | $5.9B |
| Tax | $927M | $915M | $1.0B | $1.1B | $1.2B |
| NOPAT | $3.8B | $3.8B | $4.2B | $4.4B | $4.8B |
| + Depreciation | -- | -- | -- | -- | -- |
| - Capex | -- | -- | -- | -- | -- |
| - Δ NWC | -$22M | -$43M | $41M | $43M | $46M |
| Free Cash Flow | $3.8B | $3.8B | $4.1B | $4.4B | $4.7B |
| Discount Factor | 0.936 | 0.821 | 0.719 | 0.630 | 0.517 |
| Present Value | $3.6B | $3.1B | $3.0B | $2.8B | $2.4B |
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% | $184.60 | $200.27 | $222.72 | $239.04 | $229.73 |
| 5.81% | $152.04 | $160.20 | $170.82 | $185.21 | $205.81 |
| 6.81% | $130.25 | $135.07 | $141.01 | $148.50 | $158.26 |
| 7.81% | $114.27 | $117.36 | $121.03 | $125.47 | $130.93 |
| 8.81% | $101.87 | $103.96 | $106.39 | $109.23 | $112.61 |
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-1.40%
Year 3 Revenue Growth-2.80%
Year 5 Revenue Growth2.50%
Year 7 Revenue Growth2.50%
Year 10 Revenue Growth2.50%
Terminal Growth Rate2.50%
Margin & Efficiency
Current EBIT Margin27.55%
Terminal EBIT Margin28.00%
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.