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 | $23.0B | $24.6B | $26.5B | $28.5B | $31.8B |
| EBIT | $1.7B | $1.8B | $2.7B | $3.4B | $4.3B |
| Tax | $434M | $463M | $680M | $857M | $1.1B |
| NOPAT | $1.3B | $1.4B | $2.0B | $2.5B | $3.2B |
| + Depreciation | $211M | $225M | $242M | $261M | $291M |
| - Capex | $126M | $135M | $145M | $156M | $175M |
| - Δ NWC | $40M | $45M | $65M | $70M | $78M |
| Free Cash Flow | $1.3B | $1.4B | $2.0B | $2.6B | $3.2B |
| Discount Factor | 0.931 | 0.808 | 0.700 | 0.607 | 0.490 |
| Present Value | $1.2B | $1.1B | $1.4B | $1.6B | $1.6B |
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% |
|---|
| 5.38% | $631.74 | $768.08 | $793.23 | $762.99 | $734.15 |
| 6.38% | $438.54 | $500.35 | $585.63 | $710.86 | $734.15 |
| 7.38% | $331.58 | $365.36 | $408.43 | $465.25 | $543.64 |
| 8.38% | $264.69 | $285.27 | $310.29 | $341.37 | $381.00 |
| 9.38% | $219.55 | $233.02 | $248.88 | $267.83 | $290.87 |
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 Growth2.64%
Year 3 Revenue Growth2.79%
Year 5 Revenue Growth3.75%
Year 7 Revenue Growth3.75%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
EBIT Margin7.46%
Tax Rate25.28%
Capex / Revenue0.55%
NWC / Revenue6.82%
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.