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 | $29.9B | $30.9B | $32.3B | $34.3B | $37.5B |
| EBIT | -$3.7B | -$3.9B | -$1.8B | $1.5B | $4.9B |
| Tax | -$785M | -$812M | -$380M | $312M | $1.0B |
| NOPAT | -$3.0B | -$3.1B | -$1.4B | $1.2B | $3.8B |
| + Depreciation | $410M | $424M | $443M | $470M | $514M |
| - Capex | $291M | $301M | $315M | $334M | $365M |
| - Δ NWC | $16M | $12M | $22M | $23M | $26M |
| Free Cash Flow | -$2.9B | -$2.9B | -$1.3B | $1.3B | $4.0B |
| Discount Factor | 0.937 | 0.823 | 0.723 | 0.635 | 0.523 |
| Present Value | -$2.7B | -$2.4B | -$958M | $817M | $2.1B |
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% |
|---|
| 4.70% | $104.27 | $120.91 | $125.50 | $118.82 | $112.46 |
| 5.70% | $74.76 | $82.41 | $92.91 | $108.18 | $112.46 |
| 6.70% | $56.39 | $60.60 | $65.96 | $73.00 | $82.64 |
| 7.70% | $43.50 | $46.08 | $49.21 | $53.09 | $58.02 |
| 8.70% | $33.78 | $35.47 | $37.47 | $39.84 | $42.72 |
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• Communication Services Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth2.35%
Year 3 Revenue Growth1.66%
Year 5 Revenue Growth3.00%
Year 7 Revenue Growth3.00%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin-12.51%
Terminal EBIT Margin22.00%
Tax Rate21.00%
Historical Capex / Rev0.97%
NWC / Revenue2.34%
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: 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.