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 | $26.5B | $32.8B | $24.3B | $24.8B | $27.1B |
| EBIT | $4.4B | $5.5B | $4.0B | $4.9B | $6.0B |
| Tax | $1.0B | $1.2B | $924M | $1.1B | $1.4B |
| NOPAT | $3.4B | $4.2B | $3.1B | $3.8B | $4.7B |
| + Depreciation | $108M | $133M | $99M | $101M | $110M |
| - Capex | $205M | $253M | $188M | $192M | $210M |
| - Δ NWC | $160M | $226M | $829,710.434 | $26M | $67M |
| Free Cash Flow | $3.2B | $3.9B | $3.0B | $3.7B | $4.5B |
| Discount Factor | 0.877 | 0.675 | 0.519 | 0.400 | 0.270 |
| Present Value | $2.8B | $2.6B | $1.6B | $1.5B | $1.2B |
FCF Formula: Free Cash Flow = NOPAT + Depreciation - Capex - Change in Net Working Capital
Sensitivity AnalysisPrice per Share
| WACC ↓ / Growth → | 2.75% | 3.25% | 3.75% | 4.25% | 4.75% |
|---|
| 12.00% | $90.38 | $91.19 | $92.11 | $93.15 | $94.32 |
| 13.00% | $82.87 | $83.48 | $84.15 | $84.91 | $85.76 |
| 14.00% | $76.29 | $76.76 | $77.27 | $77.83 | $78.46 |
| 15.00% | $70.48 | $70.84 | $71.24 | $71.67 | $72.14 |
| 16.00% | $65.31 | $65.60 | $65.91 | $66.24 | $66.61 |
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• Technology Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth9.70%
Year 3 Revenue Growth11.24%
Year 5 Revenue Growth0.05%
Year 7 Revenue Growth1.53%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
Current EBIT Margin16.68%
Terminal EBIT Margin25.00%
Tax Rate22.82%
Historical Capex / Rev0.77%
NWC / Revenue6.82%
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: 28x EV/EBITDA (Technology 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.