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 | $6.3B | $7.0B | $7.4B | $7.7B | $8.2B |
| EBIT | $1.1B | $1.2B | $1.2B | $1.2B | $1.3B |
| Tax | $219M | $241M | $244M | $248M | $258M |
| NOPAT | $858M | $946M | $957M | $972M | $1.0B |
| + Depreciation | $187M | $206M | $218M | $228M | $244M |
| - Capex | $156M | $172M | $182M | $190M | $203M |
| - Δ NWC | $82M | $54M | $28M | $29M | $32M |
| Free Cash Flow | $807M | $927M | $965M | $980M | $1.0B |
| Discount Factor | 0.922 | 0.783 | 0.666 | 0.566 | 0.443 |
| Present Value | $744M | $726M | $643M | $555M | $453M |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.25% | 1.75% | 2.25% | 2.75% | 3.25% |
|---|
| 6.48% | $279.39 | $301.48 | $328.79 | $363.44 | $408.83 |
| 7.48% | $232.64 | $246.70 | $263.46 | $283.77 | $308.88 |
| 8.48% | $200.07 | $209.56 | $220.58 | $233.52 | $248.94 |
| 9.48% | $176.40 | $183.09 | $190.70 | $199.44 | $209.58 |
| 10.48% | $158.65 | $163.51 | $168.96 | $175.12 | $182.13 |
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• Industrials Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth8.11%
Year 3 Revenue Growth4.63%
Year 5 Revenue Growth2.25%
Year 7 Revenue Growth2.25%
Year 10 Revenue Growth2.25%
Terminal Growth Rate2.25%
Margin & Efficiency
EBIT Margin17.04%
Tax Rate20.30%
Capex / Revenue2.47%
NWC / Revenue17.40%
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.