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 | $3.4B | $4.1B | $4.7B | $5.2B | $5.8B |
| EBIT | $1.9B | $2.2B | $2.6B | $2.1B | $1.6B |
| Tax | $369M | $436M | $503M | $415M | $320M |
| NOPAT | $1.5B | $1.8B | $2.1B | $1.7B | $1.3B |
| + Depreciation | $189M | $224M | $258M | $288M | $321M |
| - Capex | $64M | $75M | $87M | $97M | $108M |
| - Δ NWC | $103M | $108M | $101M | $87M | $51M |
| Free Cash Flow | $1.5B | $1.8B | $2.1B | $1.8B | $1.5B |
| Discount Factor | 0.916 | 0.768 | 0.644 | 0.540 | 0.415 |
| Present Value | $1.4B | $1.4B | $1.4B | $980M | $613M |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.75% | 2.25% | 2.75% | 3.25% | 3.75% |
|---|
| 7.20% | $250.21 | $269.24 | $292.54 | $321.74 | $359.41 |
| 8.20% | $209.12 | $221.42 | $235.98 | $253.47 | $274.90 |
| 9.20% | $180.19 | $188.58 | $198.27 | $209.59 | $222.99 |
| 10.20% | $158.99 | $164.95 | $171.70 | $179.43 | $188.36 |
| 11.20% | $142.99 | $147.35 | $152.22 | $157.72 | $163.94 |
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• Financial Services Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth10.03%
Year 3 Revenue Growth8.74%
Year 5 Revenue Growth7.00%
Year 7 Revenue Growth5.30%
Year 10 Revenue Growth2.75%
Terminal Growth Rate2.75%
Margin & Efficiency
EBIT Margin54.80%
Tax Rate19.54%
Capex / Revenue1.85%
NWC / Revenue32.90%
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.