WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 7.27 | 0.9011 | 6.55 | 6.55 |
| 2 | 7.41 | 0.8119 | 6.02 | 12.57 |
| 3 | 7.56 | 0.7316 | 5.53 | 18.10 |
| 4 | 7.71 | 0.6592 | 5.08 | 23.18 |
| 5 | 7.87 | 0.5940 | 4.67 | 27.86 |
| 6 | 8.02 | 0.5352 | 4.29 | 32.15 |
| 7 | 8.18 | 0.4822 | 3.95 | 36.10 |
| 8 | 8.35 | 0.4345 | 3.63 | 39.72 |
| 9 | 8.52 | 0.3915 | 3.33 | 43.06 |
| 10 | 8.69 | 0.3528 | 3.06 | 46.12 |
| 11 | 8.90 | 0.3179 | 2.83 | 48.95 |
| 12 | 9.13 | 0.2864 | 2.61 | 51.57 |
| 13 | 9.35 | 0.2581 | 2.41 | 53.98 |
| 14 | 9.59 | 0.2325 | 2.23 | 56.21 |
| 15 | 9.83 | 0.2095 | 2.06 | 58.27 |
| 16 | 10.07 | 0.1888 | 1.90 | 60.17 |
| 17 | 10.32 | 0.1701 | 1.76 | 61.93 |
| 18 | 10.58 | 0.1533 | 1.62 | 63.55 |
| 19 | 10.85 | 0.1381 | 1.50 | 65.05 |
| 20 | 11.12 | 0.1245 | 1.38 | 66.43 |
REVERSE DCF
At $340.08, the market implies a stage-1 growth rate of 26.9%.
MARKET IMPLIES
26.9%
YOUR ASSUMPTION
2.0%
DELTA
+24.9pp
If $340.08 is correct and your other inputs (WACC 11.0%, 10+10y, terminal 2.5%) hold, the market needs AAPL to grow cash flow at 26.9% annually for the next 10 years.