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 | $6.0B | $6.6B | $7.4B | $8.0B | $8.9B |
| EBIT | $917M | $1.0B | $1.1B | $1.2B | $1.3B |
| Tax | $231M | $256M | $285M | $305M | $339M |
| NOPAT | $686M | $760M | $846M | $906M | $1.0B |
| + Depreciation | $164M | $182M | $203M | $219M | $245M |
| - Capex | $81M | $90M | $101M | $108M | $121M |
| - Δ NWC | $49M | $27M | $22M | $24M | $26M |
| Free Cash Flow | $720M | $824M | $927M | $993M | $1.1B |
| Discount Factor | 0.907 | 0.746 | 0.613 | 0.504 | 0.376 |
| Present Value | $652M | $615M | $568M | $500M | $415M |
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% |
|---|
| 8.28% | $235.92 | $254.98 | $278.24 | $307.27 | $344.52 |
| 9.28% | $194.52 | $206.92 | $221.55 | $239.10 | $260.51 |
| 10.28% | $165.24 | $173.73 | $183.53 | $194.95 | $208.43 |
| 11.28% | $143.71 | $149.76 | $156.62 | $164.45 | $173.48 |
| 12.28% | $127.41 | $131.86 | $136.82 | $142.41 | $148.74 |
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• Technology Sector
Growth Assumptions (Select Years)
Year 1 Revenue Growth11.13%
Year 3 Revenue Growth5.30%
Year 5 Revenue Growth3.75%
Year 7 Revenue Growth3.75%
Year 10 Revenue Growth3.75%
Terminal Growth Rate3.75%
Margin & Efficiency
EBIT Margin15.29%
Tax Rate25.18%
Capex / Revenue1.36%
NWC / Revenue8.20%
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.