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 | $12.9B | $13.6B | $14.3B | $15.0B | $16.2B |
| EBIT | $3.1B | $3.3B | $3.7B | $4.0B | $4.5B |
| Tax | $602M | $658M | $719M | $785M | $892M |
| NOPAT | $2.5B | $2.7B | $2.9B | $3.2B | $3.6B |
| + Depreciation | $129M | $136M | $143M | $150M | $161M |
| - Capex | $18M | $19M | $20M | $21M | $23M |
| - Δ NWC | $32M | $33M | $35M | $37M | $39M |
| Free Cash Flow | $2.5B | $2.8B | $3.0B | $3.3B | $3.7B |
| Discount Factor | 0.932 | 0.810 | 0.703 | 0.611 | 0.495 |
| Present Value | $2.4B | $2.2B | $2.1B | $2.0B | $1.8B |
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% |
|---|
| 5.30% | $445.93 | $475.66 | $516.03 | $573.98 | $612.02 |
| 6.30% | $376.14 | $392.72 | $413.67 | $440.98 | $478.06 |
| 7.30% | $327.16 | $337.39 | $349.76 | $365.00 | $384.26 |
| 8.30% | $290.21 | $296.96 | $304.88 | $314.29 | $325.66 |
| 9.30% | $260.96 | $265.64 | $271.00 | $277.21 | $284.50 |
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 Growth2.50%
Year 3 Revenue Growth2.50%
Year 5 Revenue Growth2.50%
Year 7 Revenue Growth2.50%
Year 10 Revenue Growth2.50%
Terminal Growth Rate2.50%
Margin & Efficiency
Current EBIT Margin23.59%
Terminal EBIT Margin28.00%
Tax Rate19.70%
Historical Capex / Rev0.14%
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: 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.