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 | $6.8B | $7.5B | $8.1B | $8.7B | $9.7B |
| EBIT | $1.3B | $1.5B | $1.4B | $1.5B | $1.6B |
| Tax | $188M | $207M | $206M | $209M | $221M |
| NOPAT | $1.1B | $1.2B | $1.2B | $1.3B | $1.3B |
| + Depreciation | $236M | $261M | $283M | $304M | $340M |
| - Capex | $195M | $216M | $234M | $252M | $282M |
| - Δ NWC | $47M | $97M | $74M | $79M | $88M |
| Free Cash Flow | $1.1B | $1.2B | $1.2B | $1.2B | $1.3B |
| Discount Factor | 0.914 | 0.763 | 0.637 | 0.532 | 0.406 |
| Present Value | $1.0B | $913M | $775M | $656M | $528M |
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% |
|---|
| 7.44% | $101.60 | $110.10 | $120.88 | $135.05 | $154.48 |
| 8.44% | $84.67 | $89.87 | $96.18 | $103.99 | $113.92 |
| 9.44% | $73.21 | $76.63 | $80.64 | $85.43 | $91.24 |
| 10.44% | $65.04 | $67.40 | $70.11 | $73.26 | $76.96 |
| 11.44% | $59.01 | $60.70 | $62.60 | $64.78 | $67.28 |
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 Growth2.84%
Year 3 Revenue Growth5.44%
Year 5 Revenue Growth3.75%
Year 7 Revenue Growth3.75%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
EBIT Margin19.51%
Tax Rate14.24%
Capex / Revenue2.89%
NWC / Revenue25.14%
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.