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 | $15.7B | $20.9B | $14.4B | $15.1B | $16.3B |
| EBIT | $8.6B | $11.5B | $7.9B | $8.3B | $9.0B |
| Tax | $1.4B | $1.8B | $1.2B | $1.3B | $1.4B |
| NOPAT | $7.3B | $9.7B | $6.7B | $7.0B | $7.6B |
| + Depreciation | $58M | $77M | $53M | $56M | $60M |
| - Capex | $159M | $212M | $146M | $154M | $165M |
| - Δ NWC | $551M | $470M | $105M | $111M | $119M |
| Free Cash Flow | $6.6B | $9.1B | $6.5B | $6.8B | $7.4B |
| Discount Factor | 0.901 | 0.730 | 0.592 | 0.480 | 0.351 |
| Present Value | $6.0B | $6.7B | $3.8B | $3.3B | $2.6B |
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% |
|---|
| 9.04% | $102.10 | $104.13 | $106.48 | $109.21 | $112.43 |
| 10.04% | $91.84 | $93.29 | $94.93 | $96.80 | $98.96 |
| 11.04% | $83.24 | $84.30 | $85.49 | $86.82 | $88.33 |
| 12.04% | $75.89 | $76.69 | $77.58 | $78.56 | $79.65 |
| 13.04% | $69.52 | $70.14 | $70.81 | $71.54 | $72.36 |
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 Growth13.27%
Year 3 Revenue Growth8.10%
Year 5 Revenue Growth2.50%
Year 7 Revenue Growth2.50%
Year 10 Revenue Growth2.50%
Terminal Growth Rate2.50%
Margin & Efficiency
Current EBIT Margin55.08%
Tax Rate15.69%
Historical Capex / Rev1.01%
NWC / Revenue30.00%
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: 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.