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 | $8.8B | $9.5B | $9.9B | $10.3B | $11.1B |
| EBIT | $796M | $858M | $897M | $1.2B | $1.5B |
| Tax | $237M | $256M | $267M | $343M | $433M |
| NOPAT | $559M | $603M | $630M | $808M | $1.0B |
| + Depreciation | $643M | $693M | $724M | $751M | $813M |
| - Capex | $448M | $483M | $504M | $523M | $566M |
| - Δ NWC | $49M | $52M | $19M | $29M | $46M |
| Free Cash Flow | $706M | $761M | $830M | $1.0B | $1.2B |
| Discount Factor | 0.929 | 0.802 | 0.692 | 0.597 | 0.479 |
| Present Value | $655M | $610M | $575M | $601M | $584M |
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% |
|---|
| 5.64% | $44.48 | $50.22 | $58.13 | $69.73 | $72.08 |
| 6.64% | $34.53 | $37.66 | $41.66 | $46.93 | $54.20 |
| 7.64% | $28.30 | $30.22 | $32.54 | $35.42 | $39.10 |
| 8.64% | $24.11 | $25.36 | $26.83 | $28.59 | $30.72 |
| 9.64% | $21.12 | $21.98 | $22.97 | $24.12 | $25.48 |
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• Communication Services Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth4.01%
Year 3 Revenue Growth3.99%
Year 5 Revenue Growth1.38%
Year 7 Revenue Growth2.03%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
EBIT Margin9.06%
Tax Rate29.79%
Capex / Revenue5.09%
NWC / Revenue14.34%
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.