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 | $17.4B | $18.5B | $20.0B |
| EBIT | $1.2B | $1.3B | $1.4B | $2.0B | $2.6B |
| Tax | $230M | $252M | $271M | $373M | $481M |
| NOPAT | $993M | $1.1B | $1.2B | $1.6B | $2.1B |
| + Depreciation | $385M | $421M | $453M | $483M | $520M |
| - Capex | $365M | $400M | $430M | $458M | $494M |
| - Δ NWC | -$13M | $219M | $205M | $186M | $147M |
| Free Cash Flow | $1.0B | $889M | $987M | $1.4B | $2.0B |
| Discount Factor | 0.928 | 0.798 | 0.686 | 0.590 | 0.471 |
| Present Value | $951M | $710M | $677M | $855M | $920M |
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% |
|---|
| 5.82% | $172.68 | $190.22 | $212.68 | $242.47 | $283.86 |
| 6.82% | $138.10 | $148.71 | $161.65 | $177.77 | $198.41 |
| 7.82% | $114.89 | $121.80 | $129.95 | $139.71 | $151.61 |
| 8.82% | $98.46 | $103.20 | $108.66 | $115.02 | $122.52 |
| 9.82% | $86.38 | $89.76 | $93.58 | $97.94 | $102.97 |
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 Growth4.22%
Year 5 Revenue Growth3.66%
Year 7 Revenue Growth3.10%
Year 10 Revenue Growth2.25%
Terminal Growth Rate2.25%
Margin & Efficiency
EBIT Margin8.29%
Tax Rate18.82%
Capex / Revenue2.48%
NWC / Revenue33.42%
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.