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 | $58.3B | $64.6B | $69.0B | $72.8B | $79.0B |
| EBIT | $11.7B | $12.9B | $12.6B | $12.4B | $12.7B |
| Tax | $2.2B | $2.4B | $2.3B | $2.3B | $2.4B |
| NOPAT | $9.5B | $10.5B | $10.2B | $10.1B | $10.3B |
| + Depreciation | $236M | $261M | $279M | $294M | $319M |
| - Capex | -- | -- | -- | -- | -- |
| - Δ NWC | -$131M | $301M | $185M | $195M | $211M |
| Free Cash Flow | $9.9B | $10.5B | $10.3B | $10.2B | $10.4B |
| Discount Factor | 0.937 | 0.823 | 0.723 | 0.635 | 0.523 |
| Present Value | $9.2B | $8.6B | $7.5B | $6.5B | $5.5B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.75% | 2.25% | 2.75% | 3.25% | 3.75% |
|---|
| 4.70% | $764.34 | $885.13 | $1,039.89 | $1,004.32 | $970.39 |
| 5.70% | $579.92 | $638.69 | $717.39 | $828.28 | $970.39 |
| 6.70% | $473.15 | $506.53 | $548.38 | $602.36 | $674.67 |
| 7.70% | $404.56 | $425.41 | $450.47 | $481.16 | $519.64 |
| 8.70% | $357.47 | $371.34 | $387.55 | $406.73 | $429.79 |
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 Growth-2.20%
Year 3 Revenue Growth4.89%
Year 5 Revenue Growth2.75%
Year 7 Revenue Growth2.75%
Year 10 Revenue Growth2.75%
Terminal Growth Rate2.75%
Margin & Efficiency
EBIT Margin20.03%
Tax Rate18.57%
Capex / Revenue0.00%
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: 18x EV/EBITDA (S&P 500: 22x P/E)
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.