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 | $25.7B | $28.0B | $29.8B | $31.4B | $34.1B |
| EBIT | $7.0B | $7.7B | $6.8B | $6.3B | $6.0B |
| Tax | $1.2B | $1.3B | $1.2B | $1.1B | $1.1B |
| NOPAT | $5.8B | $6.3B | $5.6B | $5.2B | $4.9B |
| + Depreciation | $722M | $786M | $835M | $882M | $957M |
| - Capex | -- | -- | -- | -- | -- |
| - Δ NWC | -$561M | $109M | $80M | $84M | $91M |
| Free Cash Flow | $7.1B | $7.0B | $6.4B | $6.0B | $5.8B |
| Discount Factor | 0.913 | 0.760 | 0.633 | 0.527 | 0.401 |
| Present Value | $6.5B | $5.3B | $4.0B | $3.2B | $2.3B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.75% | 2.25% | 2.75% | 3.25% | 3.75% |
|---|
| 7.57% | $99.26 | $111.59 | $126.48 | $144.81 | $167.93 |
| 8.57% | $71.69 | $79.84 | $89.40 | $100.74 | $114.44 |
| 9.57% | $51.96 | $57.61 | $64.09 | $71.60 | $80.40 |
| 10.57% | $37.33 | $41.39 | $45.97 | $51.18 | $57.16 |
| 11.57% | $26.18 | $29.18 | $32.53 | $36.27 | $40.50 |
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• Financial Services Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth-17.90%
Year 3 Revenue Growth4.05%
Year 5 Revenue Growth2.75%
Year 7 Revenue Growth2.75%
Year 10 Revenue Growth2.75%
Terminal Growth Rate2.75%
Margin & Efficiency
EBIT Margin27.38%
Tax Rate17.55%
Capex / Revenue0.00%
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.