5-Year Free Cash Flow Projections
| Year | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|
| Revenue | $4.1B | $4.5B | $4.9B | $5.2B | $5.4B |
| EBIT | $778M | $845M | $919M | $989M | $1.0B |
| Tax | $193M | $210M | $229M | $246M | $255M |
| NOPAT | $585M | $635M | $691M | $743M | $770M |
| + Depreciation | $114M | $124M | $135M | $145M | $150M |
| - Capex | $32M | $35M | $38M | $41M | $42M |
| - Δ NWC | $35M | $35M | $39M | $37M | $19M |
| Free Cash Flow | $633M | $689M | $749M | $811M | $859M |
| Discount Factor | 0.928 | 0.862 | 0.800 | 0.743 | 0.689 |
| Present Value | $587M | $594M | $599M | $602M | $592M |
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% |
|---|
| 5.72% | $40.43 | $46.35 | $54.45 | $66.19 | $72.59 |
| 6.72% | $31.30 | $34.73 | $39.08 | $44.79 | $52.58 |
| 7.72% | $25.42 | $27.63 | $30.30 | $33.60 | $37.80 |
| 8.72% | $21.34 | $22.86 | $24.64 | $26.77 | $29.34 |
| 9.72% | $18.35 | $19.45 | $20.71 | $22.17 | $23.89 |
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
Growth Assumptions
Year 1 Revenue Growth9.27%
Year 2 Revenue Growth8.62%
Year 3 Revenue Growth8.74%
Year 4 Revenue Growth7.54%
Year 5 Revenue Growth3.61%
Terminal Growth Rate3.00%
Margin & Efficiency
EBIT Margin18.94%
Tax Rate24.86%
Capex / Revenue0.78%
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.