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 | $5.3B | $5.7B | $6.3B | $6.8B | $7.5B |
| EBIT | $990M | $1.1B | $1.2B | $1.3B | $1.4B |
| Tax | $217M | $235M | $257M | $279M | $308M |
| NOPAT | $773M | $840M | $916M | $995M | $1.1B |
| + Depreciation | $89M | $96M | $105M | $114M | $126M |
| - Capex | $111M | $121M | $132M | $143M | $158M |
| - Δ NWC | $20M | $14M | $17M | $16M | $13M |
| Free Cash Flow | $731M | $801M | $873M | $950M | $1.1B |
| Discount Factor | 0.927 | 0.797 | 0.685 | 0.589 | 0.469 |
| Present Value | $678M | $638M | $598M | $559M | $494M |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 2.00% | 2.50% | 3.00% | 3.50% | 4.00% |
|---|
| 5.86% | $536.17 | $571.95 | $620.25 | $689.02 | $749.32 |
| 6.86% | $439.81 | $459.93 | $485.26 | $518.14 | $562.52 |
| 7.86% | $369.59 | $382.07 | $397.12 | $415.62 | $438.92 |
| 8.86% | $314.93 | $323.20 | $332.88 | $344.36 | $358.21 |
| 9.86% | $270.53 | $276.27 | $282.85 | $290.47 | $299.38 |
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• Consumer Cyclical Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth6.88%
Year 3 Revenue Growth4.41%
Year 5 Revenue Growth4.70%
Year 7 Revenue Growth4.02%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin18.76%
Terminal EBIT Margin19.31%
Tax Rate21.89%
Historical Capex / Rev2.11%
NWC / Revenue5.93%
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: 20x EV/EBITDA (Consumer Cyclical 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.