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 | $4.2B | $4.6B | $5.0B | $5.3B | $5.8B |
| EBIT | $765M | $846M | $938M | $1.0B | $1.1B |
| Tax | $229M | $253M | $280M | $306M | $341M |
| NOPAT | $536M | $593M | $658M | $717M | $801M |
| + Depreciation | $158M | $174M | $190M | $201M | $220M |
| - Capex | $226M | $230M | $230M | $221M | $205M |
| - Δ NWC | $15M | $26M | $15M | $16M | $17M |
| Free Cash Flow | $452M | $511M | $603M | $681M | $799M |
| Discount Factor | 0.888 | 0.700 | 0.552 | 0.435 | 0.304 |
| Present Value | $402M | $358M | $333M | $296M | $243M |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 2.00% | 2.50% | 3.00% | 3.50% | 4.00% |
|---|
| 10.63% | $167.53 | $169.11 | $170.90 | $172.94 | $175.29 |
| 11.63% | $153.97 | $155.14 | $156.43 | $157.89 | $159.54 |
| 12.63% | $142.19 | $143.06 | $144.03 | $145.11 | $146.31 |
| 13.63% | $131.83 | $132.51 | $133.25 | $134.06 | $134.95 |
| 14.63% | $122.66 | $123.19 | $123.76 | $124.38 | $125.06 |
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• Healthcare Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth3.80%
Year 3 Revenue Growth5.96%
Year 5 Revenue Growth3.00%
Year 7 Revenue Growth3.00%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin18.26%
Terminal EBIT Margin20.00%
Tax Rate29.89%
Historical Capex / Rev5.40%
Terminal Capex / Rev3.50%
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: 24x EV/EBITDA (Healthcare 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.