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 | $5.2B | $5.9B | $6.4B | $7.0B | $7.9B |
| EBIT | $818M | $925M | $1.0B | $1.3B | $1.7B |
| Tax | $54M | $61M | $66M | $88M | $114M |
| NOPAT | $764M | $864M | $941M | $1.3B | $1.6B |
| + Depreciation | $173M | $195M | $213M | $233M | $261M |
| - Capex | $93M | $105M | $115M | $126M | $141M |
| - Δ NWC | $29M | $38M | $30M | $30M | $29M |
| Free Cash Flow | $815M | $916M | $1.0B | $1.3B | $1.7B |
| Discount Factor | 0.931 | 0.806 | 0.698 | 0.605 | 0.488 |
| Present Value | $759M | $739M | $705M | $803M | $836M |
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% |
|---|
| 5.44% | $306.28 | $339.48 | $347.41 | $332.51 | $318.31 |
| 6.44% | $244.22 | $259.50 | $280.44 | $310.94 | $318.31 |
| 7.44% | $204.54 | $212.96 | $223.66 | $237.70 | $256.96 |
| 8.44% | $175.96 | $181.12 | $187.37 | $195.11 | $204.96 |
| 9.44% | $153.86 | $157.25 | $161.23 | $165.98 | $171.73 |
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✓ Using Analyst Consensus Estimates• Technology Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth5.77%
Year 3 Revenue Growth6.80%
Year 5 Revenue Growth4.86%
Year 7 Revenue Growth4.42%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
Current EBIT Margin15.62%
Terminal EBIT Margin25.00%
Tax Rate6.58%
Historical Capex / Rev1.78%
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: 28x EV/EBITDA (Technology 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.