5-Year Free Cash Flow Projections
| Year | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|
| Revenue | $79.3B | $82.9B | $87.6B | $92.3B | $95.0B |
| EBIT | $7.5B | $7.8B | $8.3B | $8.7B | $9.0B |
| Tax | $2.0B | $2.1B | $2.2B | $2.4B | $2.4B |
| NOPAT | $5.5B | $5.7B | $6.1B | $6.4B | $6.6B |
| + Depreciation | -- | -- | -- | -- | -- |
| - Capex | -- | -- | -- | -- | -- |
| - Δ NWC | $1.6B | $2.6B | $3.4B | $3.3B | $2.0B |
| Free Cash Flow | $3.9B | $3.2B | $2.6B | $3.1B | $4.6B |
| Discount Factor | 0.937 | 0.878 | 0.823 | 0.771 | 0.723 |
| Present Value | $3.6B | $2.8B | $2.2B | $2.4B | $3.3B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 2.00% | 2.50% | 3.00% | 3.50% | 4.00% |
|---|
| 4.72% | $230.52 | $278.02 | $302.91 | $297.72 | $292.64 |
| 5.72% | $168.38 | $191.41 | $222.92 | $268.65 | $292.64 |
| 6.72% | $132.90 | $146.23 | $163.15 | $185.33 | $215.67 |
| 7.72% | $110.06 | $118.62 | $129.01 | $141.85 | $158.15 |
| 8.72% | $94.21 | $100.10 | $107.03 | $115.28 | $125.29 |
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
Growth Assumptions
Year 1 Revenue Growth2.91%
Year 2 Revenue Growth4.51%
Year 3 Revenue Growth5.72%
Year 4 Revenue Growth5.27%
Year 5 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
EBIT Margin9.46%
Tax Rate26.99%
Capex / Revenue0.00%
NWC / Revenue72.03%
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.