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 | $24.9B | $26.1B | $27.2B | $29.4B | $32.3B |
| EBIT | $3.2B | $3.3B | $3.5B | $4.7B | $6.1B |
| Tax | $955M | $998M | $1.0B | $1.4B | $1.8B |
| NOPAT | $2.2B | $2.3B | $2.4B | $3.3B | $4.3B |
| + Depreciation | $335M | $350M | $366M | $395M | $435M |
| - Capex | $321M | $336M | $351M | $379M | $417M |
| - Δ NWC | $767M | $66M | $110M | $106M | $94M |
| Free Cash Flow | $1.5B | $2.3B | $2.3B | $3.2B | $4.2B |
| Discount Factor | 0.948 | 0.852 | 0.765 | 0.687 | 0.585 |
| Present Value | $1.4B | $1.9B | $1.8B | $2.2B | $2.5B |
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% |
|---|
| 3.50% | $683.23 | $653.60 | $625.38 | $598.50 | $572.88 |
| 4.50% | $583.30 | $653.60 | $625.38 | $598.50 | $572.88 |
| 5.50% | $460.22 | $490.95 | $533.97 | $598.50 | $572.88 |
| 6.50% | $383.80 | $400.27 | $421.44 | $449.67 | $489.19 |
| 7.50% | $329.59 | $339.50 | $351.61 | $366.75 | $386.21 |
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 Growth44.44%
Year 3 Revenue Growth2.58%
Year 5 Revenue Growth4.23%
Year 7 Revenue Growth3.74%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin12.77%
Terminal EBIT Margin22.00%
Tax Rate30.00%
Historical Capex / Rev1.29%
NWC / Revenue10.00%
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: 22x EV/EBITDA (Communication Services 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.