WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 7.31 | 0.8995 | 6.58 | 6.58 |
| 2 | 7.46 | 0.8091 | 6.04 | 12.62 |
| 3 | 7.61 | 0.7278 | 5.54 | 18.15 |
| 4 | 7.76 | 0.6547 | 5.08 | 23.23 |
| 5 | 7.92 | 0.5889 | 4.66 | 27.90 |
| 6 | 8.08 | 0.5297 | 4.28 | 32.17 |
| 7 | 8.24 | 0.4765 | 3.92 | 36.10 |
| 8 | 8.40 | 0.4286 | 3.60 | 39.70 |
| 9 | 8.57 | 0.3855 | 3.30 | 43.00 |
| 10 | 8.74 | 0.3468 | 3.03 | 46.03 |
| 11 | 8.96 | 0.3119 | 2.79 | 48.83 |
| 12 | 9.18 | 0.2806 | 2.58 | 51.41 |
| 13 | 9.41 | 0.2524 | 2.38 | 53.78 |
| 14 | 9.65 | 0.2270 | 2.19 | 55.97 |
| 15 | 9.89 | 0.2042 | 2.02 | 57.99 |
| 16 | 10.14 | 0.1837 | 1.86 | 59.85 |
| 17 | 10.39 | 0.1652 | 1.72 | 61.57 |
| 18 | 10.65 | 0.1486 | 1.58 | 63.15 |
| 19 | 10.92 | 0.1337 | 1.46 | 64.61 |
| 20 | 11.19 | 0.1202 | 1.35 | 65.96 |
REVERSE DCF
At $346.05, the market implies a stage-1 growth rate of 27.3%.
MARKET IMPLIES
27.3%
YOUR ASSUMPTION
2.0%
DELTA
+25.3pp
If $346.05 is correct and your other inputs (WACC 11.2%, 10+10y, terminal 2.5%) hold, the market needs AAPL to grow cash flow at 27.3% annually for the next 10 years.