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Breakdown · COST

Costco

WACC
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
Year CF Discount factor PV Cumulative PV
1 16.02 0.9027 14.46 14.46
2 18.42 0.8149 15.01 29.48
3 21.19 0.7357 15.59 45.06
4 24.36 0.6641 16.18 61.24
5 28.02 0.5995 16.80 78.04
6 32.22 0.5412 17.44 95.48
7 37.06 0.4885 18.10 113.58
8 42.61 0.4410 18.79 132.38
9 49.01 0.3981 19.51 151.89
10 56.36 0.3594 20.26 172.14
11 57.77 0.3244 18.74 190.89
12 59.21 0.2929 17.34 208.23
13 60.69 0.2644 16.05 224.27
14 62.21 0.2387 14.85 239.12
15 63.76 0.2155 13.74 252.86
16 65.36 0.1945 12.71 265.57
17 66.99 0.1756 11.76 277.34
18 68.67 0.1585 10.88 288.22
19 70.38 0.1431 10.07 298.29
20 72.14 0.1292 9.32 307.61
REVERSE DCF

At $971.87, the market implies a stage-1 growth rate of 32.3%.

MARKET IMPLIES
32.3%
YOUR ASSUMPTION
15.0%
DELTA
+17.3pp

If $971.87 is correct and your other inputs (WACC 10.8%, 10+10y, terminal 2.5%) hold, the market needs COST to grow cash flow at 32.3% annually for the next 10 years.