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 | $6.5B | $7.4B | $8.1B | $8.7B | $9.7B |
| EBIT | $1.4B | $1.6B | $1.8B | $2.0B | $2.4B |
| Tax | $342M | $386M | $450M | $504M | $581M |
| NOPAT | $1.0B | $1.2B | $1.4B | $1.5B | $1.8B |
| + Depreciation | $201M | $227M | $249M | $268M | $299M |
| - Capex | $98M | $111M | $122M | $131M | $146M |
| - Δ NWC | $5M | $49M | $29M | $31M | $35M |
| Free Cash Flow | $1.1B | $1.2B | $1.5B | $1.6B | $1.9B |
| Discount Factor | 0.929 | 0.802 | 0.693 | 0.598 | 0.480 |
| Present Value | $1.1B | $1.0B | $1.0B | $982M | $907M |
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% |
|---|
| 5.62% | $696.14 | $754.92 | $809.57 | $775.94 | $743.87 |
| 6.62% | $573.39 | $601.58 | $639.58 | $693.59 | $743.87 |
| 7.62% | $491.42 | $507.32 | $527.31 | $553.24 | $588.18 |
| 8.62% | $430.59 | $440.47 | $452.38 | $467.00 | $485.40 |
| 9.62% | $382.54 | $389.09 | $396.76 | $405.86 | $416.82 |
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• Technology Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth0.80%
Year 3 Revenue Growth7.09%
Year 5 Revenue Growth3.75%
Year 7 Revenue Growth3.75%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
Current EBIT Margin21.16%
Terminal EBIT Margin25.00%
Tax Rate24.68%
Historical Capex / Rev1.50%
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: 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.