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 | $61.5B | $68.1B | $73.7B | $79.3B | $88.6B |
| EBIT | $16.1B | $17.8B | $19.2B | $20.7B | $23.1B |
| Tax | $1.3B | $1.5B | $1.6B | $1.7B | $1.9B |
| NOPAT | $14.7B | $16.3B | $17.6B | $19.0B | $21.2B |
| + Depreciation | $2.4B | $2.6B | $2.8B | $3.0B | $3.4B |
| - Capex | $780M | $864M | $934M | $1.0B | $1.1B |
| - Δ NWC | $474M | $299M | $260M | $280M | $313M |
| Free Cash Flow | $15.8B | $17.8B | $19.3B | $20.7B | $23.2B |
| Discount Factor | 0.927 | 0.797 | 0.685 | 0.589 | 0.469 |
| Present Value | $14.7B | $14.2B | $13.2B | $12.2B | $10.9B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.16% | 1.66% | 2.16% | 2.66% | 3.16% |
|---|
| 5.86% | $98.34 | $107.18 | $118.39 | $133.11 | $153.28 |
| 6.86% | $80.65 | $86.06 | $92.62 | $100.73 | $111.04 |
| 7.86% | $68.68 | $72.23 | $76.40 | $81.37 | $87.40 |
| 8.86% | $60.16 | $62.60 | $65.41 | $68.68 | $72.52 |
| 9.86% | $53.86 | $55.61 | $57.59 | $59.84 | $62.43 |
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 Growth8.56%
Year 3 Revenue Growth4.71%
Year 5 Revenue Growth3.75%
Year 7 Revenue Growth3.75%
Year 10 Revenue Growth3.75%
Terminal Growth Rate2.16%
Margin & Efficiency
EBIT Margin26.12%
Tax Rate8.29%
Capex / Revenue1.27%
NWC / Revenue9.78%
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.