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 | $27.3B | $32.2B | $37.9B | $43.0B | $48.3B |
| EBIT | $4.9B | $5.7B | $6.7B | $8.0B | $9.3B |
| Tax | $1.4B | $1.6B | $1.9B | $2.2B | $2.6B |
| NOPAT | $3.5B | $4.1B | $4.8B | $5.7B | $6.7B |
| + Depreciation | $1.1B | $1.3B | $1.6B | $1.8B | $2.0B |
| - Capex | $698M | $821M | $967M | $1.1B | $1.2B |
| - Δ NWC | $415M | $468M | $522M | $453M | $263M |
| Free Cash Flow | $3.5B | $4.2B | $4.9B | $6.0B | $7.2B |
| Discount Factor | 0.928 | 0.798 | 0.687 | 0.591 | 0.471 |
| Present Value | $3.3B | $3.3B | $3.4B | $3.5B | $3.4B |
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% |
|---|
| 5.81% | $417.24 | $439.80 | $470.38 | $514.21 | $543.27 |
| 6.81% | $353.74 | $366.35 | $382.27 | $402.99 | $431.09 |
| 7.81% | $307.06 | $314.85 | $324.26 | $335.85 | $350.49 |
| 8.81% | $270.43 | $275.58 | $281.61 | $288.78 | $297.44 |
| 9.81% | $240.48 | $244.05 | $248.14 | $252.88 | $258.44 |
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• Healthcare Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth8.87%
Year 3 Revenue Growth8.47%
Year 5 Revenue Growth7.97%
Year 7 Revenue Growth5.98%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin17.78%
Terminal EBIT Margin20.00%
Tax Rate28.09%
Historical Capex / Rev2.55%
NWC / Revenue18.65%
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.