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 | $79.1B | $86.9B | $88.9B | $92.8B | $99.2B |
| EBIT | $8.9B | $9.8B | $10.0B | $11.7B | $13.6B |
| Tax | $1.4B | $1.5B | $1.5B | $1.8B | $2.1B |
| NOPAT | $7.5B | $8.3B | $8.4B | $9.9B | $11.6B |
| + Depreciation | $1.6B | $1.7B | $1.8B | $1.8B | $2.0B |
| - Capex | $1.7B | $1.9B | $1.9B | $2.0B | $2.2B |
| - Δ NWC | $225M | $210M | $105M | $111M | $121M |
| Free Cash Flow | $7.1B | $7.9B | $8.2B | $9.6B | $11.2B |
| Discount Factor | 0.948 | 0.852 | 0.765 | 0.687 | 0.585 |
| Present Value | $6.8B | $6.7B | $6.2B | $6.6B | $6.6B |
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% |
|---|
| 3.50% | $1,761.60 | $1,922.44 | $1,850.05 | $1,781.04 | $1,715.24 |
| 4.50% | $1,185.43 | $1,368.62 | $1,633.22 | $1,781.04 | $1,715.24 |
| 5.50% | $887.93 | $982.22 | $1,105.52 | $1,273.65 | $1,516.52 |
| 6.50% | $709.19 | $764.55 | $832.93 | $919.54 | $1,032.80 |
| 7.50% | $591.73 | $627.04 | $669.08 | $719.97 | $782.83 |
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 Growth5.39%
Year 3 Revenue Growth4.54%
Year 5 Revenue Growth2.16%
Year 7 Revenue Growth2.20%
Year 10 Revenue Growth2.25%
Terminal Growth Rate2.25%
Margin & Efficiency
EBIT Margin11.22%
Tax Rate15.28%
Capex / Revenue2.19%
NWC / Revenue5.57%
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.