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 | $14.7B | $16.1B | $17.0B | $17.9B | $19.2B |
| EBIT | $2.8B | $3.1B | $3.6B | $4.2B | $4.9B |
| Tax | $600M | $659M | $755M | $887M | $1.0B |
| NOPAT | $2.2B | $2.5B | $2.8B | $3.3B | $3.9B |
| + Depreciation | $676M | $742M | $780M | $820M | $883M |
| - Capex | $618M | $581M | $509M | $428M | $288M |
| - Δ NWC | -$598M | $79M | $41M | $44M | $47M |
| Free Cash Flow | $2.9B | $2.5B | $3.1B | $3.7B | $4.5B |
| Discount Factor | 0.892 | 0.709 | 0.564 | 0.449 | 0.318 |
| Present Value | $2.6B | $1.8B | $1.7B | $1.6B | $1.4B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|
| 10.13% | $45.67 | $48.05 | $50.74 | $53.81 | $57.34 |
| 11.13% | $31.94 | $33.69 | $35.64 | $37.83 | $40.31 |
| 12.13% | $20.26 | $21.58 | $23.03 | $24.64 | $26.45 |
| 13.13% | $10.18 | $11.19 | $12.30 | $13.51 | $14.86 |
| 14.13% | $1.38 | $2.17 | $3.02 | $3.96 | $4.98 |
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• Financial Services Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth-28.88%
Year 3 Revenue Growth5.17%
Year 5 Revenue Growth2.50%
Year 7 Revenue Growth2.50%
Year 10 Revenue Growth2.50%
Terminal Growth Rate2.50%
Margin & Efficiency
Current EBIT Margin19.36%
Terminal EBIT Margin28.00%
Tax Rate21.07%
Historical Capex / Rev4.19%
Terminal Capex / Rev1.50%
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: 12x EV/EBITDA (Financial 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.