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 | $94.6B | $102.7B | $110.2B | $117.6B | $128.9B |
| EBIT | $11.6B | $12.6B | $13.6B | $15.6B | $18.2B |
| Tax | $2.7B | $2.9B | $3.1B | $3.6B | $4.2B |
| NOPAT | $9.0B | $9.7B | $10.4B | $12.0B | $14.0B |
| + Depreciation | $14.8B | $16.1B | $17.3B | $18.5B | $20.2B |
| - Capex | $15.4B | $16.8B | $18.0B | $19.2B | $21.0B |
| - Δ NWC | $627M | $402M | $369M | $373M | $375M |
| Free Cash Flow | $7.7B | $8.7B | $9.4B | $10.9B | $12.8B |
| Discount Factor | 0.948 | 0.852 | 0.765 | 0.687 | 0.585 |
| Present Value | $7.3B | $7.4B | $7.2B | $7.5B | $7.5B |
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% |
|---|
| 3.50% | $358.04 | $341.54 | $325.81 | $310.81 | $296.51 |
| 4.50% | $265.11 | $341.54 | $325.81 | $310.81 | $296.51 |
| 5.50% | $160.49 | $193.89 | $240.66 | $310.81 | $296.51 |
| 6.50% | $103.86 | $121.76 | $144.77 | $175.46 | $218.42 |
| 7.50% | $68.91 | $79.68 | $92.84 | $109.30 | $130.46 |
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• Communication Services Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth7.10%
Year 3 Revenue Growth4.07%
Year 5 Revenue Growth3.46%
Year 7 Revenue Growth3.28%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
EBIT Margin12.30%
Tax Rate23.03%
Capex / Revenue16.32%
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: 18x EV/EBITDA (S&P 500: 22x P/E)
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.