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 | $5.5B | $6.0B | $6.1B | $6.4B | $6.8B |
| EBIT | $908M | $995M | $1.0B | $1.1B | $1.1B |
| Tax | $173M | $189M | $192M | $201M | $215M |
| NOPAT | $735M | $806M | $817M | $854M | $913M |
| + Depreciation | $94M | $103M | $104M | $109M | $117M |
| - Capex | $156M | $172M | $174M | $182M | $194M |
| - Δ NWC | $37M | $32M | $17M | $18M | $19M |
| Free Cash Flow | $635M | $705M | $730M | $764M | $816M |
| Discount Factor | 0.917 | 0.771 | 0.648 | 0.545 | 0.420 |
| Present Value | $582M | $543M | $473M | $416M | $343M |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 5.92% | 6.42% | 6.92% | 7.42% | 7.92% |
|---|
| 7.06% | $652.64 | $629.15 | $606.71 | $585.28 | $564.80 |
| 8.06% | $608.06 | $629.15 | $606.71 | $585.28 | $564.80 |
| 9.06% | $406.25 | $470.88 | $565.73 | $585.28 | $564.80 |
| 10.06% | $304.27 | $337.02 | $380.19 | $439.73 | $527.10 |
| 11.06% | $243.65 | $262.73 | $286.41 | $316.60 | $356.40 |
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• Industrials Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth5.64%
Year 3 Revenue Growth4.40%
Year 5 Revenue Growth2.25%
Year 7 Revenue Growth2.25%
Year 10 Revenue Growth2.25%
Terminal Growth Rate6.92%
Margin & Efficiency
EBIT Margin16.54%
Tax Rate19.02%
Capex / Revenue2.85%
NWC / Revenue12.71%
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 (S&P 500: 22x P/E)
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.