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 | $30.4B | $33.6B | $35.6B | $37.4B | $40.3B |
| EBIT | $7.7B | $8.5B | $9.4B | $10.1B | $11.1B |
| Tax | $1.6B | $1.7B | $1.9B | $2.0B | $2.2B |
| NOPAT | $6.2B | $6.8B | $7.5B | $8.0B | $8.8B |
| + Depreciation | $427M | $472M | $501M | $526M | $567M |
| - Capex | -- | -- | -- | -- | -- |
| - Δ NWC | -$1.2B | $148M | $87M | $91M | $98M |
| Free Cash Flow | $7.8B | $7.1B | $7.9B | $8.5B | $9.3B |
| Discount Factor | 0.914 | 0.764 | 0.639 | 0.534 | 0.408 |
| Present Value | $7.2B | $5.4B | $5.0B | $4.5B | $3.8B |
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% |
|---|
| 7.39% | $62.65 | $65.13 | $68.12 | $71.80 | $76.41 |
| 8.39% | $53.49 | $55.13 | $57.06 | $59.34 | $62.09 |
| 9.39% | $46.20 | $47.34 | $48.65 | $50.17 | $51.94 |
| 10.39% | $40.21 | $41.03 | $41.96 | $43.02 | $44.22 |
| 11.39% | $35.17 | $35.78 | $36.46 | $37.22 | $38.08 |
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-29.10%
Year 3 Revenue Growth4.61%
Year 5 Revenue Growth2.50%
Year 7 Revenue Growth2.50%
Year 10 Revenue Growth2.50%
Terminal Growth Rate2.50%
Margin & Efficiency
Current EBIT Margin25.43%
Terminal EBIT Margin28.00%
Tax Rate20.18%
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.