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 | $22.0B | $25.2B | $29.6B | $34.0B | $37.9B |
| EBIT | $2.4B | $2.8B | $3.2B | $4.0B | $4.7B |
| Tax | $406M | $465M | $546M | $670M | $787M |
| NOPAT | $2.0B | $2.3B | $2.7B | $3.3B | $3.9B |
| + Depreciation | $1.1B | $1.3B | $1.5B | $1.7B | $1.9B |
| - Capex | $377M | $432M | $508M | $583M | $649M |
| - Δ NWC | $7M | $96M | $135M | $111M | $45M |
| Free Cash Flow | $2.7B | $3.1B | $3.6B | $4.3B | $5.1B |
| Discount Factor | 0.935 | 0.818 | 0.716 | 0.626 | 0.512 |
| Present Value | $2.6B | $2.5B | $2.5B | $2.7B | $2.6B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.25% | 1.75% | 2.25% | 2.75% | 3.25% |
|---|
| 4.91% | $534.21 | $572.43 | $625.00 | $701.84 | $714.36 |
| 5.91% | $441.69 | $462.64 | $489.30 | $524.40 | $572.66 |
| 6.91% | $376.39 | $389.17 | $404.70 | $423.95 | $448.45 |
| 7.91% | $326.76 | $335.13 | $344.98 | $356.74 | $371.01 |
| 8.91% | $287.19 | $292.95 | $299.58 | $307.29 | $316.35 |
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• Industrials Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth0.56%
Year 3 Revenue Growth7.61%
Year 5 Revenue Growth9.28%
Year 7 Revenue Growth6.47%
Year 10 Revenue Growth2.25%
Terminal Growth Rate2.25%
Margin & Efficiency
Current EBIT Margin10.94%
Terminal EBIT Margin13.00%
Tax Rate16.87%
Historical Capex / Rev1.72%
NWC / Revenue5.38%
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: 18x EV/EBITDA (Industrials 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.