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 | $9.6B | $11.8B | $13.8B | $14.9B | $16.6B |
| EBIT | $2.3B | $2.8B | $3.3B | $3.6B | $4.1B |
| Tax | $115M | $141M | $167M | $182M | $206M |
| NOPAT | $2.2B | $2.7B | $3.2B | $3.5B | $3.9B |
| + Depreciation | $446M | $547M | $642M | $691M | $772M |
| - Capex | $196M | $241M | $282M | $304M | $340M |
| - Δ NWC | $7M | $3M | $1M | $2M | $2M |
| Free Cash Flow | $2.4B | $3.0B | $3.5B | $3.8B | $4.3B |
| Discount Factor | 0.925 | 0.791 | 0.676 | 0.578 | 0.457 |
| Present Value | $2.2B | $2.4B | $2.4B | $2.2B | $2.0B |
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% |
|---|
| 6.14% | $545.74 | $586.29 | $643.85 | $700.56 | $670.07 |
| 7.14% | $449.59 | $470.96 | $498.63 | $535.90 | $588.80 |
| 8.14% | $382.30 | $395.02 | $410.65 | $430.30 | $455.76 |
| 9.14% | $331.15 | $339.35 | $349.07 | $360.78 | $375.17 |
| 10.14% | $290.22 | $295.80 | $302.26 | $309.81 | $318.77 |
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• Technology Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth36.46%
Year 3 Revenue Growth10.80%
Year 5 Revenue Growth3.75%
Year 7 Revenue Growth3.75%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
Current EBIT Margin23.83%
Terminal EBIT Margin25.00%
Tax Rate5.00%
Historical Capex / Rev2.04%
NWC / Revenue0.29%
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: 28x EV/EBITDA (Technology 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.