WACC
PREDICTABILITY
GROWTH WINDOWS
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.