WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 12.55 | 0.8934 | 11.21 | 11.21 |
| 2 | 13.41 | 0.7982 | 10.71 | 21.92 |
| 3 | 14.33 | 0.7132 | 10.22 | 32.14 |
| 4 | 15.32 | 0.6372 | 9.76 | 41.90 |
| 5 | 16.37 | 0.5693 | 9.32 | 51.22 |
| 6 | 17.50 | 0.5086 | 8.90 | 60.12 |
| 7 | 18.70 | 0.4544 | 8.50 | 68.62 |
| 8 | 19.99 | 0.4060 | 8.12 | 76.74 |
| 9 | 21.37 | 0.3627 | 7.75 | 84.49 |
| 10 | 22.84 | 0.3241 | 7.40 | 91.89 |
| 11 | 23.41 | 0.2896 | 6.78 | 98.67 |
| 12 | 23.99 | 0.2587 | 6.21 | 104.88 |
| 13 | 24.59 | 0.2311 | 5.68 | 110.56 |
| 14 | 25.21 | 0.2065 | 5.21 | 115.76 |
| 15 | 25.84 | 0.1845 | 4.77 | 120.53 |
| 16 | 26.48 | 0.1648 | 4.37 | 124.90 |
| 17 | 27.14 | 0.1473 | 4.00 | 128.89 |
| 18 | 27.82 | 0.1316 | 3.66 | 132.56 |
| 19 | 28.52 | 0.1176 | 3.35 | 135.91 |
| 20 | 29.23 | 0.1050 | 3.07 | 138.98 |
REVERSE DCF
At $336.71, the market implies a stage-1 growth rate of 20.5%.
MARKET IMPLIES
20.5%
YOUR ASSUMPTION
6.9%
DELTA
+13.6pp
If $336.71 is correct and your other inputs (WACC 11.9%, 10+10y, terminal 2.5%) hold, the market needs GOOGL to grow cash flow at 20.5% annually for the next 10 years.