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 | $9.3B | $10.0B | $10.5B | $11.0B | $11.7B |
| EBIT | $1.1B | $1.2B | $1.3B | $1.4B | $1.5B |
| Tax | $278M | $299M | $328M | $351M | $383M |
| NOPAT | $806M | $868M | $951M | $1.0B | $1.1B |
| + Depreciation | $283M | $304M | $321M | $335M | $358M |
| - Capex | $258M | $278M | $293M | $306M | $327M |
| - Δ NWC | $22M | $20M | $13M | $13M | $14M |
| Free Cash Flow | $809M | $875M | $966M | $1.0B | $1.1B |
| Discount Factor | 0.930 | 0.804 | 0.695 | 0.601 | 0.483 |
| Present Value | $752M | $703M | $671M | $621M | $545M |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.25% | 1.75% | 2.25% | 2.75% | 3.25% |
|---|
| 5.56% | $272.82 | $286.50 | $304.31 | $328.47 | $363.12 |
| 6.56% | $230.86 | $238.93 | $248.88 | $261.44 | $277.81 |
| 7.56% | $199.21 | $204.38 | $210.52 | $217.95 | $227.09 |
| 8.56% | $174.03 | $177.53 | $181.59 | $186.35 | $192.00 |
| 9.56% | $153.27 | $155.74 | $158.55 | $161.78 | $165.52 |
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• Industrials Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth4.55%
Year 3 Revenue Growth3.80%
Year 5 Revenue Growth2.25%
Year 7 Revenue Growth2.25%
Year 10 Revenue Growth2.25%
Terminal Growth Rate2.25%
Margin & Efficiency
Current EBIT Margin11.71%
Terminal EBIT Margin13.00%
Tax Rate25.63%
Historical Capex / Rev2.79%
NWC / Revenue5.47%
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 (Industrials 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.