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 | $20.1B | $21.8B | $24.0B | $26.2B | $29.5B |
| EBIT | $4.7B | $5.1B | $5.6B | $5.3B | $5.2B |
| Tax | $881M | $952M | $1.1B | $1.0B | $984M |
| NOPAT | $3.8B | $4.1B | $4.5B | $4.3B | $4.2B |
| + Depreciation | $3.0B | $3.2B | $3.5B | $3.8B | $4.3B |
| - Capex | $1.4B | $1.5B | $1.7B | $1.8B | $2.0B |
| - Δ NWC | -$57M | $41M | $59M | $58M | $56M |
| Free Cash Flow | $5.4B | $5.7B | $6.3B | $6.3B | $6.5B |
| Discount Factor | 0.947 | 0.849 | 0.762 | 0.683 | 0.580 |
| Present Value | $5.1B | $4.9B | $4.8B | $4.3B | $3.7B |
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% |
|---|
| 3.60% | $410.71 | $394.81 | $379.65 | $365.18 | $351.38 |
| 4.60% | $410.71 | $394.81 | $379.65 | $365.18 | $351.38 |
| 5.60% | $276.89 | $330.71 | $379.65 | $365.18 | $351.38 |
| 6.60% | $196.59 | $222.26 | $256.94 | $306.39 | $351.38 |
| 7.60% | $150.69 | $165.12 | $183.29 | $206.89 | $238.77 |
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• Technology Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth-5.07%
Year 3 Revenue Growth3.74%
Year 5 Revenue Growth4.86%
Year 7 Revenue Growth4.42%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
EBIT Margin23.22%
Tax Rate18.86%
Capex / Revenue6.94%
NWC / Revenue5.26%
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.