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 | $16.9B | $20.7B | $22.8B | $24.1B | $26.1B |
| EBIT | $2.9B | $3.5B | $3.7B | $3.8B | $4.0B |
| Tax | $570M | $699M | $734M | $752M | $794M |
| NOPAT | $2.3B | $2.9B | $3.0B | $3.1B | $3.2B |
| + Depreciation | $657M | $804M | $885M | $934M | $1.0B |
| - Capex | $157M | $192M | $212M | $223M | $242M |
| - Δ NWC | $344M | $245M | $70M | $74M | $81M |
| Free Cash Flow | $2.5B | $3.2B | $3.6B | $3.7B | $3.9B |
| Discount Factor | 0.940 | 0.831 | 0.735 | 0.650 | 0.540 |
| Present Value | $2.3B | $2.7B | $2.6B | $2.4B | $2.1B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.75% | 2.25% | 2.75% | 3.25% | 3.75% |
|---|
| 4.35% | $430.84 | $524.69 | $533.36 | $512.94 | $493.47 |
| 5.35% | $298.67 | $340.86 | $399.24 | $485.37 | $493.47 |
| 6.35% | $225.88 | $248.82 | $278.13 | $316.88 | $370.51 |
| 7.35% | $180.51 | $194.44 | $211.40 | $232.49 | $259.43 |
| 8.35% | $149.97 | $159.06 | $169.78 | $182.59 | $198.19 |
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 Growth21.42%
Year 3 Revenue Growth11.41%
Year 5 Revenue Growth2.75%
Year 7 Revenue Growth2.75%
Year 10 Revenue Growth2.75%
Terminal Growth Rate2.75%
Margin & Efficiency
EBIT Margin17.12%
Tax Rate19.68%
Capex / Revenue0.93%
NWC / Revenue11.52%
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.