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 | $4.7B | $5.6B | $7.0B | $8.5B | $9.9B |
| EBIT | $1.4B | $1.6B | $2.1B | $2.5B | $2.9B |
| Tax | $275M | $328M | $412M | $501M | $582M |
| NOPAT | $1.1B | $1.3B | $1.6B | $2.0B | $2.3B |
| + Depreciation | $132M | $157M | $197M | $240M | $279M |
| - Capex | $143M | $170M | $214M | $261M | $303M |
| - Δ NWC | $45M | $58M | $99M | $87M | $34M |
| Free Cash Flow | $1.0B | $1.2B | $1.5B | $1.9B | $2.3B |
| Discount Factor | 0.895 | 0.716 | 0.573 | 0.459 | 0.328 |
| Present Value | $935M | $889M | $877M | $872M | $746M |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 2.00% | 2.50% | 3.00% | 3.50% | 4.00% |
|---|
| 9.78% | $368.89 | $374.30 | $380.51 | $387.70 | $396.15 |
| 10.78% | $332.89 | $336.78 | $341.16 | $346.15 | $351.87 |
| 11.78% | $302.17 | $305.04 | $308.23 | $311.82 | $315.86 |
| 12.78% | $275.55 | $277.72 | $280.11 | $282.76 | $285.71 |
| 13.78% | $252.23 | $253.90 | $255.72 | $257.73 | $259.93 |
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• Healthcare Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth8.76%
Year 3 Revenue Growth9.67%
Year 5 Revenue Growth13.56%
Year 7 Revenue Growth9.34%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin29.41%
Terminal EBIT Margin31.60%
Tax Rate19.99%
Historical Capex / Rev3.06%
NWC / Revenue11.88%
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: 24x EV/EBITDA (Healthcare 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.