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 | $14.0B | $14.6B | $16.4B | $17.4B | $19.0B |
| EBIT | $1.9B | $2.0B | $2.5B | $2.9B | $3.5B |
| Tax | $424M | $442M | $539M | $638M | $760M |
| NOPAT | $1.5B | $1.6B | $1.9B | $2.3B | $2.7B |
| + Depreciation | $737M | $770M | $863M | $916M | $1.0B |
| - Capex | $603M | $604M | $647M | $655M | $664M |
| - Δ NWC | $17M | $12M | $25M | $26M | $29M |
| Free Cash Flow | $1.6B | $1.7B | $2.1B | $2.5B | $3.0B |
| Discount Factor | 0.948 | 0.852 | 0.765 | 0.687 | 0.585 |
| Present Value | $1.6B | $1.5B | $1.6B | $1.7B | $1.8B |
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% |
|---|
| 3.50% | $1,073.07 | $1,021.93 | $973.22 | $926.82 | $882.59 |
| 4.50% | $903.10 | $1,021.93 | $973.22 | $926.82 | $882.59 |
| 5.50% | $693.09 | $745.03 | $817.74 | $926.82 | $882.59 |
| 6.50% | $562.12 | $589.95 | $625.73 | $673.44 | $740.24 |
| 7.50% | $468.82 | $485.57 | $506.04 | $531.63 | $564.52 |
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• Healthcare Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth2.42%
Year 3 Revenue Growth1.60%
Year 5 Revenue Growth3.00%
Year 7 Revenue Growth3.00%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin13.93%
Terminal EBIT Margin20.00%
Tax Rate21.76%
Historical Capex / Rev4.32%
Terminal Capex / Rev3.50%
NWC / Revenue5.22%
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: 24x EV/EBITDA (Healthcare 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.