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 | $36.0B | $42.1B | $36.8B | $38.1B | $40.3B |
| EBIT | $2.4B | $2.9B | $2.5B | $4.4B | $6.3B |
| Tax | $486M | $569M | $497M | $873M | $1.3B |
| NOPAT | $2.0B | $2.3B | $2.0B | $3.5B | $5.1B |
| + Depreciation | $1.2B | $1.4B | $1.2B | $1.3B | $1.4B |
| - Capex | $668M | $782M | $684M | $707M | $748M |
| - Δ NWC | $76M | $64M | $8M | $9M | $11M |
| Free Cash Flow | $2.4B | $2.9B | $2.6B | $4.1B | $5.7B |
| Discount Factor | 0.929 | 0.801 | 0.691 | 0.596 | 0.478 |
| Present Value | $2.3B | $2.3B | $1.8B | $2.4B | $2.7B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.00% | 1.50% | 2.00% | 2.50% | 3.00% |
|---|
| 5.66% | $432.91 | $455.66 | $484.61 | $522.71 | $575.12 |
| 6.66% | $364.16 | $378.03 | $394.88 | $415.78 | $442.38 |
| 7.66% | $312.26 | $321.34 | $332.03 | $344.79 | $360.28 |
| 8.66% | $271.13 | $277.39 | $284.58 | $292.94 | $302.77 |
| 9.66% | $237.44 | $241.91 | $246.97 | $252.73 | $259.35 |
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• Utilities Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth17.15%
Year 3 Revenue Growth11.69%
Year 5 Revenue Growth1.55%
Year 7 Revenue Growth1.73%
Year 10 Revenue Growth2.00%
Terminal Growth Rate2.00%
Margin & Efficiency
Current EBIT Margin6.81%
Terminal EBIT Margin20.00%
Tax Rate19.85%
Historical Capex / Rev1.86%
NWC / Revenue1.45%
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: 16x EV/EBITDA (Utilities 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.