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 | $93.5B | $106.0B | $116.0B | $127.2B | $138.8B |
| EBIT | $7.2B | $8.2B | $9.0B | $12.2B | $15.6B |
| Tax | $1.4B | $1.6B | $1.7B | $2.3B | $3.0B |
| NOPAT | $5.8B | $6.6B | $7.3B | $9.9B | $12.7B |
| + Depreciation | $4.5B | $5.1B | $5.6B | $6.1B | $6.7B |
| - Capex | $2.9B | $3.2B | $3.5B | $3.9B | $4.2B |
| - Δ NWC | $487M | $613M | $632M | $531M | $305M |
| Free Cash Flow | $7.0B | $7.9B | $8.6B | $11.6B | $14.8B |
| Discount Factor | 0.943 | 0.839 | 0.747 | 0.665 | 0.558 |
| Present Value | $6.6B | $6.6B | $6.5B | $7.7B | $8.2B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.25% | 1.75% | 2.25% | 2.75% | 3.25% |
|---|
| 4.01% | $273.85 | $304.92 | $319.87 | $305.80 | $292.40 |
| 5.01% | $215.84 | $230.34 | $250.10 | $278.61 | $292.40 |
| 6.01% | $178.85 | $186.90 | $197.08 | $210.40 | $228.54 |
| 7.01% | $152.34 | $157.29 | $163.28 | $170.67 | $180.03 |
| 8.01% | $131.97 | $135.23 | $139.05 | $143.60 | $149.11 |
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• Industrials Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth5.50%
Year 3 Revenue Growth6.14%
Year 5 Revenue Growth5.76%
Year 7 Revenue Growth4.36%
Year 10 Revenue Growth2.25%
Terminal Growth Rate2.25%
Margin & Efficiency
Current EBIT Margin7.72%
Terminal EBIT Margin13.00%
Tax Rate19.05%
Historical Capex / Rev3.05%
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 (Industrials 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.