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 | $8.2B | $8.8B | $9.3B | $9.9B | $10.8B |
| EBIT | $1.6B | $1.8B | $1.9B | $2.0B | $2.2B |
| Tax | $151M | $162M | $172M | $182M | $199M |
| NOPAT | $1.5B | $1.6B | $1.7B | $1.8B | $2.0B |
| + Depreciation | $545M | $588M | $621M | $659M | $720M |
| - Capex | $309M | $328M | $340M | $355M | $377M |
| - Δ NWC | -$14M | $30M | $23M | $24M | $27M |
| Free Cash Flow | $1.7B | $1.8B | $2.0B | $2.1B | $2.3B |
| Discount Factor | 0.946 | 0.847 | 0.759 | 0.679 | 0.576 |
| Present Value | $1.6B | $1.6B | $1.5B | $1.4B | $1.3B |
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% |
|---|
| 3.68% | $429.21 | $411.00 | $393.65 | $377.11 | $361.34 |
| 4.68% | $349.78 | $387.16 | $393.65 | $377.11 | $361.34 |
| 5.68% | $280.33 | $297.45 | $320.96 | $355.28 | $361.34 |
| 6.68% | $236.07 | $245.48 | $257.44 | $273.16 | $294.77 |
| 7.68% | $204.23 | $209.98 | $216.95 | $225.60 | $236.60 |
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• Healthcare Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth-1.98%
Year 3 Revenue Growth4.12%
Year 5 Revenue Growth3.00%
Year 7 Revenue Growth3.00%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin20.13%
Terminal EBIT Margin26.20%
Tax Rate9.17%
Historical Capex / Rev3.79%
Terminal Capex / Rev3.50%
NWC / Revenue8.47%
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: 24x EV/EBITDA (Healthcare 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.