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 | $10.9B | $16.9B | $10.0B | $10.5B | $11.3B |
| EBIT | $5.7B | $8.9B | $5.2B | $5.5B | $5.9B |
| Tax | $768M | $1.2B | $705M | $741M | $798M |
| NOPAT | $4.9B | $7.7B | $4.5B | $4.8B | $5.1B |
| + Depreciation | -- | -- | -- | -- | -- |
| - Capex | $67M | $105M | $62M | $65M | $70M |
| - Δ NWC | -$2.5B | $1.2B | $73M | $77M | $83M |
| Free Cash Flow | $7.4B | $6.4B | $4.4B | $4.6B | $5.0B |
| Discount Factor | 0.881 | 0.683 | 0.530 | 0.411 | 0.280 |
| Present Value | $6.5B | $4.3B | $2.3B | $1.9B | $1.4B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|
| 11.56% | $58.92 | $59.47 | $60.07 | $60.75 | $61.50 |
| 12.56% | $54.86 | $55.27 | $55.73 | $56.23 | $56.79 |
| 13.56% | $51.31 | $51.63 | $51.97 | $52.36 | $52.78 |
| 14.56% | $48.17 | $48.42 | $48.69 | $48.99 | $49.31 |
| 15.56% | $45.38 | $45.58 | $45.79 | $46.02 | $46.28 |
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• Financial Services Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth-43.56%
Year 3 Revenue Growth31.61%
Year 5 Revenue Growth2.50%
Year 7 Revenue Growth2.50%
Year 10 Revenue Growth2.50%
Terminal Growth Rate2.50%
Margin & Efficiency
Current EBIT Margin52.57%
Tax Rate13.43%
Historical Capex / Rev0.62%
NWC / Revenue30.00%
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: 12x EV/EBITDA (Financial Services 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.