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 | $4.7B | $6.7B | $7.5B | $8.0B | $9.0B |
| EBIT | $1.1B | $1.5B | $1.7B | $1.9B | $2.2B |
| Tax | $321M | $464M | $523M | $577M | $658M |
| NOPAT | $749M | $1.1B | $1.2B | $1.3B | $1.5B |
| + Depreciation | $1.0B | $1.5B | $1.7B | $1.8B | $2.0B |
| - Capex | $288M | $414M | $455M | $487M | $538M |
| - Δ NWC | $40M | $156M | $41M | $44M | $49M |
| Free Cash Flow | $1.5B | $2.0B | $2.4B | $2.6B | $3.0B |
| Discount Factor | 0.909 | 0.751 | 0.621 | 0.513 | 0.386 |
| Present Value | $1.3B | $1.5B | $1.5B | $1.3B | $1.1B |
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% |
|---|
| 8.00% | $94.60 | $97.37 | $100.78 | $105.10 | $110.76 |
| 9.00% | $82.93 | $84.69 | $86.79 | $89.34 | $92.48 |
| 10.00% | $73.54 | $74.73 | $76.12 | $77.74 | $79.68 |
| 11.00% | $65.74 | $66.58 | $67.54 | $68.64 | $69.91 |
| 12.00% | $59.09 | $59.71 | $60.39 | $61.17 | $62.05 |
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 Growth5.97%
Year 3 Revenue Growth18.18%
Year 5 Revenue Growth3.75%
Year 7 Revenue Growth3.75%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
Current EBIT Margin22.94%
Terminal EBIT Margin25.00%
Tax Rate30.00%
Historical Capex / Rev6.18%
Terminal Capex / Rev6.00%
NWC / Revenue15.05%
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.