WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 7.27 | 0.9028 | 6.56 | 6.56 |
| 2 | 7.41 | 0.8150 | 6.04 | 12.60 |
| 3 | 7.56 | 0.7357 | 5.56 | 18.17 |
| 4 | 7.71 | 0.6642 | 5.12 | 23.29 |
| 5 | 7.87 | 0.5996 | 4.72 | 28.01 |
| 6 | 8.02 | 0.5413 | 4.34 | 32.35 |
| 7 | 8.18 | 0.4887 | 4.00 | 36.35 |
| 8 | 8.35 | 0.4412 | 3.68 | 40.03 |
| 9 | 8.52 | 0.3983 | 3.39 | 43.42 |
| 10 | 8.69 | 0.3595 | 3.12 | 46.55 |
| 11 | 8.90 | 0.3246 | 2.89 | 49.44 |
| 12 | 9.13 | 0.2930 | 2.67 | 52.11 |
| 13 | 9.35 | 0.2645 | 2.47 | 54.58 |
| 14 | 9.59 | 0.2388 | 2.29 | 56.87 |
| 15 | 9.83 | 0.2156 | 2.12 | 58.99 |
| 16 | 10.07 | 0.1946 | 1.96 | 60.95 |
| 17 | 10.32 | 0.1757 | 1.81 | 62.77 |
| 18 | 10.58 | 0.1586 | 1.68 | 64.44 |
| 19 | 10.85 | 0.1432 | 1.55 | 66.00 |
| 20 | 11.12 | 0.1293 | 1.44 | 67.43 |
REVERSE DCF
At $307.34, the market implies a stage-1 growth rate of 25.0%.
MARKET IMPLIES
25.0%
YOUR ASSUMPTION
2.0%
DELTA
+23.0pp
If $307.34 is correct and your other inputs (WACC 10.8%, 10+10y, terminal 2.5%) hold, the market needs AAPL to grow cash flow at 25.0% annually for the next 10 years.