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 | $7.2B | $10.0B | $5.3B | $2.9B | $2.4B |
| EBIT | $207M | $289M | $154M | $342M | $471M |
| Tax | $36M | $50M | $26M | $59M | $81M |
| NOPAT | $172M | $240M | $128M | $283M | $390M |
| + Depreciation | $134M | $188M | $100M | $54M | $45M |
| - Capex | $17M | $24M | $13M | $7M | $6M |
| - Δ NWC | -$4M | $438M | -$1.0B | -$244M | $17M |
| Free Cash Flow | $293M | -$34M | $1.2B | $574M | $411M |
| Discount Factor | 0.845 | 0.604 | 0.431 | 0.308 | 0.186 |
| Present Value | $248M | -$21M | $525M | $177M | $77M |
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% |
|---|
| 16.31% | $24.84 | $24.89 | $24.94 | $25.00 | $25.06 |
| 17.31% | $24.11 | $24.15 | $24.19 | $24.24 | $24.28 |
| 18.31% | $23.45 | $23.48 | $23.51 | $23.55 | $23.59 |
| 19.31% | $22.84 | $22.87 | $22.90 | $22.93 | $22.96 |
| 20.31% | $22.29 | $22.32 | $22.34 | $22.36 | $22.39 |
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• Financial Services Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth-0.19%
Year 3 Revenue Growth17.38%
Year 5 Revenue Growth-38.93%
Year 7 Revenue Growth-22.36%
Year 10 Revenue Growth2.50%
Terminal Growth Rate2.50%
Margin & Efficiency
Current EBIT Margin2.89%
Terminal EBIT Margin28.00%
Tax Rate17.20%
Historical Capex / Rev0.24%
NWC / Revenue29.54%
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.