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 | $10.5B | $13.4B | $17.0B | $20.4B | $23.9B |
| EBIT | $581M | $741M | $937M | $1.8B | $2.8B |
| Tax | $168M | $214M | $271M | $527M | $822M |
| NOPAT | $413M | $527M | $666M | $1.3B | $2.0B |
| + Depreciation | $332M | $424M | $536M | $644M | $754M |
| - Capex | $196M | $250M | $316M | $379M | $445M |
| - Δ NWC | $131M | $149M | $184M | $164M | $86M |
| Free Cash Flow | $418M | $551M | $702M | $1.4B | $2.2B |
| Discount Factor | 0.927 | 0.796 | 0.684 | 0.588 | 0.468 |
| Present Value | $388M | $439M | $480M | $820M | $1.0B |
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% |
|---|
| 5.88% | $75.69 | $87.98 | $106.03 | $109.16 | $105.19 |
| 6.88% | $56.24 | $62.44 | $70.62 | $81.91 | $98.50 |
| 7.88% | $44.71 | $48.31 | $52.78 | $58.48 | $66.00 |
| 8.88% | $37.19 | $39.47 | $42.19 | $45.50 | $49.62 |
| 9.88% | $31.97 | $33.50 | $35.29 | $37.39 | $39.89 |
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 Growth14.20%
Year 3 Revenue Growth12.49%
Year 5 Revenue Growth12.12%
Year 7 Revenue Growth8.77%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
EBIT Margin5.52%
Tax Rate28.94%
Capex / Revenue1.86%
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: 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.