WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 1.74 | 0.9211 | 1.60 | 1.60 |
| 2 | 1.77 | 0.8485 | 1.50 | 3.10 |
| 3 | 1.81 | 0.7815 | 1.41 | 4.52 |
| 4 | 1.84 | 0.7199 | 1.33 | 5.84 |
| 5 | 1.88 | 0.6631 | 1.25 | 7.09 |
| 6 | 1.92 | 0.6108 | 1.17 | 8.26 |
| 7 | 1.96 | 0.5626 | 1.10 | 9.36 |
| 8 | 2.00 | 0.5183 | 1.03 | 10.40 |
| 9 | 2.04 | 0.4774 | 0.97 | 11.37 |
| 10 | 2.08 | 0.4397 | 0.91 | 12.28 |
| 11 | 2.13 | 0.4050 | 0.86 | 13.15 |
| 12 | 2.18 | 0.3731 | 0.81 | 13.96 |
| 13 | 2.24 | 0.3437 | 0.77 | 14.73 |
| 14 | 2.29 | 0.3166 | 0.73 | 15.45 |
| 15 | 2.35 | 0.2916 | 0.69 | 16.14 |
| 16 | 2.41 | 0.2686 | 0.65 | 16.79 |
| 17 | 2.47 | 0.2474 | 0.61 | 17.40 |
| 18 | 2.53 | 0.2279 | 0.58 | 17.97 |
| 19 | 2.59 | 0.2099 | 0.54 | 18.52 |
| 20 | 2.66 | 0.1934 | 0.51 | 19.03 |
REVERSE DCF
At $91.83, the market implies a stage-1 growth rate of 25.0%.
MARKET IMPLIES
25.0%
YOUR ASSUMPTION
2.0%
DELTA
+23.0pp
If $91.83 is correct and your other inputs (WACC 8.6%, 10+10y, terminal 2.5%) hold, the market needs KO to grow cash flow at 25.0% annually for the next 10 years.