WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 381.93 | 0.9355 | 357.30 | 357.30 |
| 2 | 405.64 | 0.8752 | 355.00 | 712.30 |
| 3 | 430.82 | 0.8187 | 352.72 | 1065.02 |
| 4 | 457.56 | 0.7659 | 350.45 | 1415.47 |
| 5 | 485.96 | 0.7165 | 348.20 | 1763.67 |
| 6 | 516.12 | 0.6703 | 345.96 | 2109.63 |
| 7 | 548.16 | 0.6271 | 343.74 | 2453.37 |
| 8 | 582.18 | 0.5866 | 341.53 | 2794.90 |
| 9 | 618.32 | 0.5488 | 339.33 | 3134.23 |
| 10 | 656.70 | 0.5134 | 337.15 | 3471.38 |
| 11 | 673.12 | 0.4803 | 323.29 | 3794.67 |
| 12 | 689.94 | 0.4493 | 310.00 | 4104.67 |
| 13 | 707.19 | 0.4203 | 297.26 | 4401.93 |
| 14 | 724.87 | 0.3932 | 285.04 | 4686.97 |
| 15 | 742.99 | 0.3679 | 273.32 | 4960.29 |
| 16 | 761.57 | 0.3441 | 262.09 | 5222.38 |
| 17 | 780.61 | 0.3219 | 251.31 | 5473.69 |
| 18 | 800.12 | 0.3012 | 240.98 | 5714.67 |
| 19 | 820.13 | 0.2818 | 231.08 | 5945.75 |
| 20 | 840.63 | 0.2636 | 221.58 | 6167.32 |
REVERSE DCF
At $13858.00, the market implies a stage-1 growth rate of 17.7%.
MARKET IMPLIES
17.7%
YOUR ASSUMPTION
6.2%
DELTA
+11.5pp
If $13858.00 is correct and your other inputs (WACC 6.9%, 10+10y, terminal 2.5%) hold, the market needs AZN.L to grow cash flow at 17.7% annually for the next 10 years.