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 | $23.1B | $24.9B | $28.1B | $30.2B | $33.7B |
| EBIT | $1.9B | $2.0B | $3.2B | $4.9B | $6.9B |
| Tax | $472M | $509M | $815M | $1.2B | $1.8B |
| NOPAT | $1.4B | $1.5B | $2.4B | $3.7B | $5.2B |
| + Depreciation | $272M | $294M | $331M | $357M | $398M |
| - Capex | $127M | $137M | $154M | $166M | $185M |
| - Δ NWC | $48M | $67M | $75M | $81M | $90M |
| Free Cash Flow | $1.5B | $1.6B | $2.5B | $3.8B | $5.3B |
| Discount Factor | 0.931 | 0.808 | 0.701 | 0.608 | 0.492 |
| Present Value | $1.4B | $1.3B | $1.8B | $2.3B | $2.6B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 2.75% | 3.25% | 3.75% | 4.25% | 4.75% |
|---|
| 5.36% | $1,057.42 | $1,172.54 | $1,163.31 | $1,113.10 | $1,065.26 |
| 6.36% | $844.04 | $895.86 | $967.56 | $1,073.29 | $1,065.26 |
| 7.36% | $708.19 | $736.41 | $772.44 | $820.08 | $885.99 |
| 8.36% | $610.29 | $627.44 | $648.31 | $674.26 | $707.42 |
| 9.36% | $534.47 | $545.67 | $558.88 | $574.66 | $593.88 |
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• Technology Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth2.91%
Year 3 Revenue Growth3.80%
Year 5 Revenue Growth3.75%
Year 7 Revenue Growth3.75%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
Current EBIT Margin8.10%
Terminal EBIT Margin25.00%
Tax Rate25.28%
Historical Capex / Rev0.55%
NWC / Revenue7.38%
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: 28x EV/EBITDA (Technology 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.