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 | $21.2B | $26.8B | $34.3B | $40.8B | $47.5B |
| EBIT | $6.0B | $7.6B | $9.7B | $11.6B | $13.5B |
| Tax | $1.2B | $1.5B | $1.9B | $2.3B | $2.7B |
| NOPAT | $4.8B | $6.1B | $7.8B | $9.3B | $10.8B |
| + Depreciation | $792M | $999M | $1.3B | $1.5B | $1.8B |
| - Capex | $223M | $281M | $360M | $428M | $498M |
| - Δ NWC | $59M | $73M | $86M | $77M | $43M |
| Free Cash Flow | $5.3B | $6.7B | $8.6B | $10.3B | $12.0B |
| Discount Factor | 0.911 | 0.755 | 0.626 | 0.519 | 0.392 |
| Present Value | $4.9B | $5.1B | $5.4B | $5.3B | $4.7B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 2.75% | 3.25% | 3.75% | 4.25% | 4.75% |
|---|
| 7.83% | $752.21 | $775.63 | $804.79 | $842.09 | $891.52 |
| 8.83% | $661.70 | $676.47 | $694.16 | $715.71 | $742.54 |
| 9.83% | $589.94 | $599.85 | $611.39 | $625.00 | $641.29 |
| 10.83% | $530.88 | $537.83 | $545.76 | $554.89 | $565.53 |
| 11.83% | $481.02 | $486.06 | $491.72 | $498.13 | $505.44 |
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 Growth12.68%
Year 3 Revenue Growth12.27%
Year 5 Revenue Growth11.26%
Year 7 Revenue Growth8.26%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
Current EBIT Margin28.37%
Tax Rate19.96%
Historical Capex / Rev1.05%
NWC / Revenue2.48%
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: 28x EV/EBITDA (Technology 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.