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 | $2.2B | $2.9B | $3.4B | $3.7B | $4.1B |
| EBIT | $25M | $33M | $204M | $474M | $776M |
| Tax | $7M | $10M | $61M | $142M | $233M |
| NOPAT | $17M | $23M | $143M | $332M | $543M |
| + Depreciation | $138M | $183M | $219M | $236M | $264M |
| - Capex | $109M | $145M | $173M | $186M | $208M |
| - Δ NWC | $23M | $25M | $7M | $7M | $8M |
| Free Cash Flow | $24M | $37M | $182M | $374M | $591M |
| Discount Factor | 0.918 | 0.773 | 0.651 | 0.548 | 0.424 |
| Present Value | $22M | $28M | $119M | $205M | $250M |
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% |
|---|
| 6.96% | $75.89 | $79.16 | $83.44 | $89.31 | $97.83 |
| 7.96% | $64.91 | $66.83 | $69.19 | $72.20 | $76.14 |
| 8.96% | $56.51 | $57.73 | $59.18 | $60.94 | $63.12 |
| 9.96% | $49.74 | $50.56 | $51.52 | $52.64 | $53.98 |
| 10.96% | $44.10 | $44.68 | $45.34 | $46.10 | $46.98 |
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 Growth23.18%
Year 3 Revenue Growth18.60%
Year 5 Revenue Growth3.75%
Year 7 Revenue Growth3.75%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
Current EBIT Margin1.14%
Terminal EBIT Margin25.00%
Tax Rate30.00%
Historical Capex / Rev5.02%
NWC / Revenue5.55%
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: 28x EV/EBITDA (Technology 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.