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 | $11.1B | $12.1B | $8.7B | $9.3B | $10.4B |
| EBIT | $1.2B | $1.3B | $1.0B | $1.2B | $1.5B |
| Tax | $384M | $418M | $321M | $379M | $456M |
| NOPAT | $837M | $913M | $701M | $828M | $995M |
| + Depreciation | $2.8B | $3.0B | $2.2B | $2.3B | $2.6B |
| - Capex | $626M | $683M | $489M | $526M | $587M |
| - Δ NWC | $96M | $51M | $31M | $34M | $38M |
| Free Cash Flow | $2.9B | $3.2B | $2.3B | $2.6B | $3.0B |
| Discount Factor | 0.938 | 0.825 | 0.726 | 0.639 | 0.527 |
| Present Value | $2.7B | $2.6B | $1.7B | $1.7B | $1.6B |
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% |
|---|
| 4.62% | $189.74 | $182.49 | $175.58 | $168.98 | $162.69 |
| 5.62% | $127.88 | $152.06 | $175.58 | $168.98 | $162.69 |
| 6.62% | $91.66 | $103.24 | $118.85 | $141.07 | $162.69 |
| 7.62% | $70.91 | $77.43 | $85.64 | $96.28 | $110.63 |
| 8.62% | $57.66 | $61.71 | $66.59 | $72.59 | $80.14 |
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 Growth9.44%
Year 3 Revenue Growth4.43%
Year 5 Revenue Growth3.75%
Year 7 Revenue Growth3.75%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
EBIT Margin11.01%
Tax Rate31.42%
Capex / Revenue5.65%
NWC / Revenue10.00%
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.