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 | $15.6B | $17.2B | $17.2B | $18.1B | $19.5B |
| EBIT | $4.4B | $4.9B | $4.9B | $5.1B | $5.5B |
| Tax | $1.0B | $1.1B | $1.1B | $1.2B | $1.3B |
| NOPAT | $3.4B | $3.8B | $3.8B | $3.9B | $4.3B |
| + Depreciation | $369M | $407M | $408M | $428M | $461M |
| - Capex | -- | -- | -- | -- | -- |
| - Δ NWC | -$355M | $84M | $42M | $44M | $48M |
| Free Cash Flow | $4.1B | $4.1B | $4.1B | $4.3B | $4.7B |
| Discount Factor | 0.889 | 0.702 | 0.555 | 0.439 | 0.308 |
| Present Value | $3.7B | $2.9B | $2.3B | $1.9B | $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% |
|---|
| 10.49% | $134.08 | $135.81 | $137.77 | $139.98 | $142.52 |
| 11.49% | $123.10 | $124.39 | $125.82 | $127.42 | $129.22 |
| 12.49% | $113.66 | $114.64 | $115.72 | $116.91 | $118.23 |
| 13.49% | $105.45 | $106.21 | $107.03 | $107.94 | $108.93 |
| 14.49% | $98.23 | $98.82 | $99.46 | $100.16 | $100.93 |
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-18.55%
Year 3 Revenue Growth5.15%
Year 5 Revenue Growth2.50%
Year 7 Revenue Growth2.50%
Year 10 Revenue Growth2.50%
Terminal Growth Rate2.50%
Margin & Efficiency
Current EBIT Margin28.38%
Tax Rate23.13%
Historical Capex / Rev0.00%
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.