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 | $4.5B | $5.2B | $6.4B | $7.8B | $9.3B |
| EBIT | $802M | $930M | $1.1B | $1.6B | $2.1B |
| Tax | $200M | $232M | $285M | $400M | $524M |
| NOPAT | $602M | $698M | $857M | $1.2B | $1.6B |
| + Depreciation | $653M | $757M | $930M | $1.1B | $1.4B |
| - Capex | $689M | $690M | $715M | $714M | $555M |
| - Δ NWC | $59M | $87M | $172M | $155M | $74M |
| Free Cash Flow | $507M | $678M | $901M | $1.5B | $2.3B |
| Discount Factor | 0.948 | 0.852 | 0.765 | 0.687 | 0.585 |
| Present Value | $481M | $577M | $689M | $1.0B | $1.3B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 2.75% | 3.25% | 3.75% | 4.25% | 4.75% |
|---|
| 3.50% | $484.20 | $461.93 | $440.72 | $420.53 | $401.29 |
| 4.50% | $484.20 | $461.93 | $440.72 | $420.53 | $401.29 |
| 5.50% | $384.71 | $424.11 | $440.72 | $420.53 | $401.29 |
| 6.50% | $306.29 | $324.66 | $349.72 | $385.91 | $401.29 |
| 7.50% | $254.92 | $265.12 | $278.04 | $294.93 | $317.96 |
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• Technology Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth6.34%
Year 3 Revenue Growth8.17%
Year 5 Revenue Growth13.83%
Year 7 Revenue Growth9.80%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
Current EBIT Margin17.93%
Terminal EBIT Margin25.00%
Tax Rate24.96%
Historical Capex / Rev15.39%
Terminal Capex / Rev6.00%
NWC / Revenue22.22%
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: 28x EV/EBITDA (Technology 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.