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 | $8.6B | $9.3B | $9.8B | $9.7B | $10.2B |
| EBIT | $1.8B | $1.9B | $2.0B | $1.8B | $1.7B |
| Tax | $355M | $384M | $401M | $360M | $339M |
| NOPAT | $1.4B | $1.6B | $1.6B | $1.5B | $1.4B |
| + Depreciation | $942M | $1.0B | $1.1B | $1.1B | $1.1B |
| - Capex | $2.2B | $2.3B | $2.4B | $2.4B | $2.5B |
| - Δ NWC | $5M | $18M | -$5M | $1M | $11M |
| Free Cash Flow | $221M | $227M | $260M | $89M | -$65M |
| Discount Factor | 0.948 | 0.852 | 0.765 | 0.687 | 0.585 |
| Present Value | $209M | $193M | $199M | $61M | -$38M |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.00% | 1.50% | 2.00% | 2.50% | 3.00% |
|---|
| 3.50% | $-63.46 | $-65.06 | $-64.72 | $-64.41 | $-64.11 |
| 4.50% | $-61.27 | $-61.96 | $-62.94 | $-64.41 | $-64.11 |
| 5.50% | $-60.08 | $-60.45 | $-60.93 | $-61.57 | $-62.47 |
| 6.50% | $-59.35 | $-59.57 | $-59.85 | $-60.19 | $-60.63 |
| 7.50% | $-58.86 | $-59.00 | $-59.18 | $-59.38 | $-59.64 |
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✓ Using Analyst Consensus Estimates• Utilities Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth1.12%
Year 3 Revenue Growth3.58%
Year 5 Revenue Growth-0.94%
Year 7 Revenue Growth0.24%
Year 10 Revenue Growth2.00%
Terminal Growth Rate2.00%
Margin & Efficiency
EBIT Margin20.84%
Tax Rate19.71%
Capex / Revenue25.03%
NWC / Revenue5.49%
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.