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 | $5.6B | $6.5B | $4.7B | $5.1B | $5.6B |
| EBIT | $1.1B | $1.3B | $925M | $998M | $1.1B |
| Tax | $247M | $286M | $210M | $226M | $250M |
| NOPAT | $842M | $976M | $715M | $771M | $852M |
| + Depreciation | $85M | $99M | $72M | $77M | $85M |
| - Capex | $98M | $114M | $83M | $89M | $98M |
| - Δ NWC | $33M | $21M | $12M | $12M | $12M |
| Free Cash Flow | $796M | $940M | $692M | $747M | $827M |
| Discount Factor | 0.923 | 0.787 | 0.671 | 0.573 | 0.451 |
| Present Value | $735M | $740M | $465M | $428M | $373M |
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% |
|---|
| 6.29% | $112.37 | $116.13 | $121.03 | $127.69 | $137.25 |
| 7.29% | $100.34 | $102.56 | $105.29 | $108.75 | $113.26 |
| 8.29% | $91.19 | $92.61 | $94.29 | $96.33 | $98.85 |
| 9.29% | $83.84 | $84.80 | $85.92 | $87.22 | $88.78 |
| 10.29% | $77.74 | $78.42 | $79.19 | $80.08 | $81.11 |
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 Growth8.72%
Year 3 Revenue Growth4.56%
Year 5 Revenue Growth3.50%
Year 7 Revenue Growth3.30%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin19.48%
Terminal EBIT Margin26.12%
Tax Rate22.70%
Historical Capex / Rev1.76%
NWC / Revenue7.37%
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.