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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 0.9013 14.44 14.44
2 18.42 0.8124 14.97 29.41
3 21.19 0.7322 15.51 44.92
4 24.36 0.6600 16.08 61.00
5 28.02 0.5949 16.67 77.67
6 32.22 0.5362 17.28 94.95
7 37.06 0.4833 17.91 112.85
8 42.61 0.4356 18.56 131.42
9 49.01 0.3926 19.24 150.66
10 56.36 0.3539 19.94 170.60
11 57.77 0.3190 18.42 189.03
12 59.21 0.2875 17.02 206.05
13 60.69 0.2591 15.73 221.77
14 62.21 0.2336 14.53 236.30
15 63.76 0.2105 13.42 249.73
16 65.36 0.1897 12.40 262.13
17 66.99 0.1710 11.46 273.58
18 68.67 0.1541 10.58 284.17
19 70.38 0.1389 9.78 293.95
20 72.14 0.1252 9.03 302.98
REVERSE DCF

At $966.58, the market implies a stage-1 growth rate of 32.5%.

MARKET IMPLIES
32.5%
YOUR ASSUMPTION
15.0%
DELTA
+17.5pp

If $966.58 is correct and your other inputs (WACC 10.9%, 10+10y, terminal 2.5%) hold, the market needs COST to grow cash flow at 32.5% annually for the next 10 years.