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 | $17.2B | $19.3B | $21.6B | $23.5B | $26.0B |
| EBIT | $2.3B | $2.6B | $2.9B | $3.7B | $4.6B |
| Tax | $360M | $404M | $450M | $579M | $725M |
| NOPAT | $1.9B | $2.2B | $2.4B | $3.1B | $3.9B |
| + Depreciation | $1.2B | $1.4B | $1.5B | $1.7B | $1.8B |
| - Capex | $670M | $735M | $801M | $854M | $911M |
| - Δ NWC | $93M | $111M | $105M | $96M | $76M |
| Free Cash Flow | $2.4B | $2.7B | $3.1B | $3.8B | $4.8B |
| Discount Factor | 0.925 | 0.792 | 0.678 | 0.580 | 0.459 |
| Present Value | $2.2B | $2.1B | $2.1B | $2.2B | $2.2B |
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% |
|---|
| 6.09% | $500.37 | $528.10 | $564.80 | $615.65 | $690.80 |
| 7.09% | $419.28 | $435.30 | $455.23 | $480.71 | $514.44 |
| 8.09% | $358.89 | $369.01 | $381.11 | $395.84 | $414.18 |
| 9.09% | $311.24 | $318.02 | $325.92 | $335.23 | $346.36 |
| 10.09% | $272.16 | $276.92 | $282.35 | $288.60 | $295.87 |
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 Growth5.70%
Year 3 Revenue Growth6.07%
Year 5 Revenue Growth5.12%
Year 7 Revenue Growth4.27%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin13.36%
Terminal EBIT Margin20.00%
Tax Rate15.62%
Historical Capex / Rev3.88%
Terminal Capex / Rev3.50%
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: 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.