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 | $14.8B | $16.2B | $17.2B | $18.2B | $19.5B |
| EBIT | $1.2B | $1.3B | $1.4B | $1.8B | $2.2B |
| Tax | $230M | $252M | $269M | $341M | $420M |
| NOPAT | $993M | $1.1B | $1.2B | $1.5B | $1.8B |
| + Depreciation | $386M | $422M | $450M | $474M | $509M |
| - Capex | $375M | $411M | $438M | $461M | $495M |
| - Δ NWC | -$7M | $117M | $86M | $83M | $78M |
| Free Cash Flow | $1.0B | $982M | $1.1B | $1.4B | $1.7B |
| Discount Factor | 0.927 | 0.797 | 0.686 | 0.590 | 0.470 |
| Present Value | $937M | $783M | $744M | $826M | $821M |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 1.25% | 1.75% | 2.25% | 2.75% | 3.25% |
|---|
| 5.84% | $179.36 | $187.10 | $197.01 | $210.12 | $228.29 |
| 6.84% | $154.52 | $159.22 | $164.93 | $172.05 | $181.15 |
| 7.84% | $135.57 | $138.63 | $142.24 | $146.55 | $151.81 |
| 8.84% | $120.39 | $122.49 | $124.91 | $127.73 | $131.05 |
| 9.84% | $107.85 | $109.35 | $111.04 | $112.98 | $115.21 |
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• Industrials Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth-0.27%
Year 3 Revenue Growth4.15%
Year 5 Revenue Growth2.83%
Year 7 Revenue Growth2.60%
Year 10 Revenue Growth2.25%
Terminal Growth Rate2.25%
Margin & Efficiency
Current EBIT Margin8.29%
Terminal EBIT Margin13.00%
Tax Rate18.82%
Historical Capex / Rev2.54%
NWC / Revenue18.17%
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 (Industrials 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.