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 | $73.7B | $87.3B | $91.7B | $95.9B | $102.5B |
| EBIT | $17.0B | $20.1B | $21.1B | $22.1B | $23.6B |
| Tax | $4.1B | $4.8B | $5.1B | $5.3B | $5.7B |
| NOPAT | $12.9B | $15.3B | $16.1B | $16.8B | $18.0B |
| + Depreciation | $2.4B | $2.9B | $3.0B | $3.2B | $3.4B |
| - Capex | $2.8B | $3.3B | $3.4B | $3.5B | $3.6B |
| - Δ NWC | $1.7B | $1.9B | $561M | $587M | $627M |
| Free Cash Flow | $10.8B | $13.0B | $15.2B | $15.9B | $17.1B |
| Discount Factor | 0.906 | 0.744 | 0.611 | 0.502 | 0.374 |
| Present Value | $9.8B | $9.7B | $9.3B | $8.0B | $6.4B |
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% |
|---|
| 8.34% | $481.80 | $491.34 | $502.44 | $515.53 | $531.18 |
| 9.34% | $428.28 | $434.96 | $442.59 | $451.37 | $461.59 |
| 10.34% | $383.32 | $388.16 | $393.60 | $399.76 | $406.78 |
| 11.34% | $344.81 | $348.42 | $352.42 | $356.88 | $361.90 |
| 12.34% | $311.37 | $314.11 | $317.12 | $320.45 | $324.14 |
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 Growth9.05%
Year 3 Revenue Growth8.70%
Year 5 Revenue Growth2.25%
Year 7 Revenue Growth2.25%
Year 10 Revenue Growth2.25%
Terminal Growth Rate2.25%
Margin & Efficiency
Current EBIT Margin23.04%
Tax Rate23.94%
Historical Capex / Rev3.80%
Terminal Capex / Rev3.50%
NWC / Revenue27.81%
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.