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 | $11.5B | $16.8B | $17.3B | $14.2B | $14.2B |
| EBIT | $1.4B | $2.0B | $2.1B | $2.4B | $3.0B |
| Tax | $70M | $102M | $105M | $119M | $148M |
| NOPAT | $1.3B | $1.9B | $2.0B | $2.3B | $2.8B |
| + Depreciation | $475M | $691M | $715M | $587M | $587M |
| - Capex | $434M | $631M | $654M | $537M | $536M |
| - Δ NWC | $71M | $67M | -$90M | -$34M | $15M |
| Free Cash Flow | $1.3B | $1.9B | $2.2B | $2.4B | $2.8B |
| Discount Factor | 0.897 | 0.722 | 0.581 | 0.468 | 0.338 |
| Present Value | $1.2B | $1.4B | $1.3B | $1.1B | $961M |
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% |
|---|
| 9.46% | $176.84 | $180.41 | $184.59 | $189.58 | $195.63 |
| 10.46% | $157.18 | $159.64 | $162.46 | $165.75 | $169.60 |
| 11.46% | $140.71 | $142.47 | $144.46 | $146.73 | $149.34 |
| 12.46% | $126.63 | $127.93 | $129.38 | $131.01 | $132.85 |
| 13.46% | $114.41 | $115.40 | $116.48 | $117.68 | $119.02 |
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• Technology Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth26.73%
Year 3 Revenue Growth15.77%
Year 5 Revenue Growth-14.99%
Year 7 Revenue Growth-7.49%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
Current EBIT Margin12.15%
Terminal EBIT Margin25.00%
Tax Rate5.00%
Historical Capex / Rev3.77%
NWC / Revenue2.94%
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.