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 | $9.3B | $11.4B | $13.6B | $15.9B | $17.8B |
| EBIT | $3.7B | $4.6B | $5.4B | $6.3B | $7.1B |
| Tax | $668M | $823M | $980M | $1.1B | $1.3B |
| NOPAT | $3.0B | $3.7B | $4.5B | $5.2B | $5.8B |
| + Depreciation | $307M | $378M | $450M | $526M | $590M |
| - Capex | $311M | $383M | $456M | $533M | $597M |
| - Δ NWC | $175M | $178M | $226M | $187M | $68M |
| Free Cash Flow | $2.9B | $3.6B | $4.2B | $5.0B | $5.8B |
| Discount Factor | 0.909 | 0.752 | 0.621 | 0.514 | 0.386 |
| Present Value | $2.6B | $2.7B | $2.6B | $2.6B | $2.2B |
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% |
|---|
| 7.99% | $193.23 | $197.48 | $202.47 | $208.40 | $215.60 |
| 8.99% | $172.56 | $175.49 | $178.86 | $182.77 | $187.36 |
| 9.99% | $155.47 | $157.57 | $159.94 | $162.64 | $165.74 |
| 10.99% | $141.01 | $142.56 | $144.29 | $146.22 | $148.41 |
| 11.99% | $128.58 | $129.75 | $131.04 | $132.47 | $134.06 |
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 Growth12.21%
Year 3 Revenue Growth9.88%
Year 5 Revenue Growth10.59%
Year 7 Revenue Growth7.25%
Year 10 Revenue Growth2.25%
Terminal Growth Rate2.25%
Margin & Efficiency
Current EBIT Margin40.01%
Tax Rate18.04%
Historical Capex / Rev3.36%
NWC / Revenue17.39%
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 (Industrials 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.