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 | $71.1B | $78.3B | $82.9B | $88.1B | $97.9B |
| EBIT | $8.7B | $9.6B | $10.1B | $10.8B | $12.0B |
| Tax | $1.8B | $2.0B | $2.1B | $2.3B | $2.5B |
| NOPAT | $6.9B | $7.6B | $8.0B | $8.5B | $9.5B |
| + Depreciation | $5.3B | $5.9B | $6.2B | $6.6B | $7.3B |
| - Capex | $2.1B | $2.3B | $2.4B | $2.6B | $2.9B |
| - Δ NWC | $358M | $395M | $228M | $273M | $354M |
| Free Cash Flow | $9.8B | $10.7B | $11.6B | $12.3B | $13.6B |
| Discount Factor | 0.940 | 0.831 | 0.735 | 0.650 | 0.540 |
| Present Value | $9.2B | $8.9B | $8.5B | $8.0B | $7.3B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.86% | 2.36% | 2.86% | 3.36% | 3.86% |
|---|
| 4.36% | $419.46 | $518.32 | $497.88 | $478.40 | $459.81 |
| 5.36% | $283.50 | $326.90 | $387.66 | $478.40 | $459.81 |
| 6.36% | $209.93 | $233.17 | $263.07 | $302.93 | $358.74 |
| 7.36% | $164.54 | $178.52 | $195.61 | $216.98 | $244.46 |
| 8.36% | $134.19 | $143.26 | $153.98 | $166.84 | $182.57 |
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 Growth5.29%
Year 3 Revenue Growth5.31%
Year 5 Revenue Growth2.83%
Year 7 Revenue Growth3.20%
Year 10 Revenue Growth3.75%
Terminal Growth Rate2.86%
Margin & Efficiency
EBIT Margin12.23%
Tax Rate21.00%
Capex / Revenue2.92%
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.