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 | $8.6B | $9.2B | $10.2B | $11.1B | $12.3B |
| EBIT | $1.1B | $1.2B | $1.3B | $1.7B | $2.2B |
| Tax | $170M | $183M | $203M | $263M | $331M |
| NOPAT | $954M | $1.0B | $1.1B | $1.5B | $1.9B |
| + Depreciation | $1.0B | $1.1B | $1.2B | $1.3B | $1.5B |
| - Capex | $280M | $300M | $333M | $364M | $403M |
| - Δ NWC | $96M | $95M | $152M | $139M | $108M |
| Free Cash Flow | $1.6B | $1.7B | $1.9B | $2.3B | $2.8B |
| Discount Factor | 0.944 | 0.842 | 0.751 | 0.670 | 0.564 |
| Present Value | $1.5B | $1.5B | $1.4B | $1.5B | $1.6B |
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% |
|---|
| 3.90% | $444.34 | $424.70 | $406.00 | $388.17 | $371.18 |
| 4.90% | $337.93 | $371.21 | $406.00 | $388.17 | $371.18 |
| 5.90% | $271.04 | $287.08 | $308.64 | $339.20 | $371.18 |
| 6.90% | $227.03 | $236.10 | $247.48 | $262.21 | $282.03 |
| 7.90% | $194.82 | $200.46 | $207.25 | $215.58 | $226.05 |
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• Healthcare Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth3.90%
Year 3 Revenue Growth3.57%
Year 5 Revenue Growth5.22%
Year 7 Revenue Growth4.33%
Year 10 Revenue Growth3.00%
Terminal Growth Rate3.00%
Margin & Efficiency
Current EBIT Margin13.14%
Terminal EBIT Margin20.00%
Tax Rate15.13%
Historical Capex / Rev3.27%
NWC / Revenue30.00%
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: 24x EV/EBITDA (Healthcare 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.