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 | $16.3B | $17.1B | $18.0B | $18.6B | $20.0B |
| EBIT | $3.1B | $3.2B | $3.4B | $3.7B | $4.2B |
| Tax | $766M | $805M | $847M | $927M | $1.1B |
| NOPAT | $2.3B | $2.4B | $2.5B | $2.8B | $3.1B |
| + Depreciation | $369M | $388M | $409M | $421M | $454M |
| - Capex | $365M | $383M | $403M | $415M | $448M |
| - Δ NWC | -$372,279.1 | $6M | $8M | $17M | $32M |
| Free Cash Flow | $2.3B | $2.4B | $2.5B | $2.8B | $3.1B |
| Discount Factor | 0.942 | 0.836 | 0.742 | 0.658 | 0.550 |
| Present Value | $2.2B | $2.0B | $1.9B | $1.8B | $1.7B |
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% |
|---|
| 4.15% | $221.22 | $223.06 | $213.92 | $205.20 | $196.89 |
| 5.15% | $171.85 | $184.67 | $203.45 | $205.20 | $196.89 |
| 6.15% | $143.23 | $149.73 | $158.28 | $170.06 | $187.31 |
| 7.15% | $123.64 | $127.42 | $132.11 | $138.08 | $145.95 |
| 8.15% | $108.95 | $111.35 | $114.21 | $117.68 | $122.00 |
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• Communication Services Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth-0.04%
Year 3 Revenue Growth0.70%
Year 5 Revenue Growth0.84%
Year 7 Revenue Growth1.71%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin18.73%
Terminal EBIT Margin22.00%
Tax Rate25.09%
Historical Capex / Rev2.24%
NWC / Revenue5.44%
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: 22x EV/EBITDA (Communication Services 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.