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 | $327.6B | $440.5B | $643.7B | $888.1B | $1.1T |
| EBIT | $144.1B | $193.8B | $283.2B | $390.7B | $487.0B |
| Tax | $25.4B | $34.2B | $49.9B | $68.9B | $85.9B |
| NOPAT | $118.7B | $159.6B | $233.2B | $321.8B | $401.1B |
| + Depreciation | $22.4B | $30.2B | $44.1B | $60.8B | $75.8B |
| - Capex | $42.2B | $50.1B | $63.3B | $73.7B | $66.4B |
| - Δ NWC | $11.0B | $14.9B | $29.1B | $28.5B | $9.6B |
| Free Cash Flow | $87.9B | $124.8B | $184.9B | $280.4B | $401.0B |
| Discount Factor | 0.914 | 0.765 | 0.639 | 0.534 | 0.409 |
| Present Value | $80.4B | $95.4B | $118.2B | $149.9B | $163.9B |
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% |
|---|
| 7.36% | $1,002.73 | $1,040.26 | $1,088.18 | $1,151.49 | $1,239.06 |
| 8.36% | $871.66 | $894.48 | $922.25 | $956.77 | $1,000.86 |
| 9.36% | $770.04 | $784.95 | $802.53 | $823.54 | $849.10 |
| 10.36% | $687.64 | $697.90 | $709.71 | $723.45 | $739.64 |
| 11.36% | $618.82 | $626.15 | $634.44 | $643.90 | $654.79 |
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• Technology Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth16.28%
Year 3 Revenue Growth16.50%
Year 5 Revenue Growth23.36%
Year 7 Revenue Growth15.52%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
Current EBIT Margin43.99%
Terminal EBIT Margin45.62%
Tax Rate17.63%
Historical Capex / Rev12.90%
Terminal Capex / Rev6.00%
NWC / Revenue23.90%
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: 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.