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 | $3.5B | $3.8B | $4.3B | $4.5B | $4.8B |
| EBIT | $1.7B | $1.9B | $2.1B | $2.2B | $2.4B |
| Tax | $87M | $95M | $107M | $112M | $121M |
| NOPAT | $1.7B | $1.8B | $2.0B | $2.1B | $2.3B |
| + Depreciation | $423M | $463M | $521M | $548M | $590M |
| - Capex | $15M | $16M | $18M | $19M | $20M |
| - Δ NWC | $25M | $41M | $22M | $23M | $24M |
| Free Cash Flow | $2.0B | $2.2B | $2.5B | $2.6B | $2.8B |
| Discount Factor | 0.927 | 0.797 | 0.685 | 0.589 | 0.469 |
| Present Value | $1.9B | $1.8B | $1.7B | $1.6B | $1.3B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.89% | 2.39% | 2.89% | 3.39% | 3.89% |
|---|
| 5.86% | $211.49 | $240.67 | $279.66 | $334.41 | $410.61 |
| 6.86% | $158.28 | $174.92 | $195.73 | $222.54 | $258.36 |
| 7.86% | $124.03 | $134.44 | $146.94 | $162.23 | $181.37 |
| 8.86% | $100.47 | $107.41 | $115.51 | $125.08 | $136.59 |
| 9.86% | $83.51 | $88.35 | $93.88 | $100.27 | $107.73 |
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• Real Estate Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth3.60%
Year 3 Revenue Growth5.45%
Year 5 Revenue Growth2.50%
Year 7 Revenue Growth2.50%
Year 10 Revenue Growth2.50%
Terminal Growth Rate2.89%
Margin & Efficiency
EBIT Margin50.24%
Tax Rate5.00%
Capex / Revenue0.42%
NWC / Revenue20.73%
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.