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 | $12.9B | $14.6B | $15.9B | $17.4B | $18.9B |
| EBIT | $953M | $1.1B | $1.2B | $1.3B | $1.4B |
| Tax | $211M | $238M | $260M | $283M | $309M |
| NOPAT | $742M | $836M | $914M | $997M | $1.1B |
| + Depreciation | $342M | $385M | $421M | $460M | $500M |
| - Capex | $347M | $391M | $427M | $466M | $507M |
| - Δ NWC | $43M | $85M | $82M | $69M | $42M |
| Free Cash Flow | $694M | $746M | $826M | $922M | $1.0B |
| Discount Factor | 0.948 | 0.852 | 0.765 | 0.687 | 0.585 |
| Present Value | $658M | $635M | $632M | $634M | $607M |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.00% | 1.50% | 0.59% | 1.09% | 1.59% |
|---|
| 3.50% | $856.69 | $1,050.35 | $747.43 | $885.44 | $1,043.01 |
| 4.50% | $591.22 | $675.79 | $537.95 | $604.53 | $693.99 |
| 5.50% | $447.58 | $492.86 | $417.30 | $454.93 | $502.18 |
| 6.50% | $358.98 | $386.21 | $340.07 | $363.48 | $391.66 |
| 7.50% | $299.77 | $317.42 | $287.18 | $302.72 | $320.89 |
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• Industrials Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth3.46%
Year 3 Revenue Growth6.20%
Year 5 Revenue Growth5.42%
Year 7 Revenue Growth4.15%
Year 10 Revenue Growth2.25%
Terminal Growth Rate0.59%
Margin & Efficiency
EBIT Margin7.38%
Tax Rate22.14%
Capex / Revenue2.69%
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.