WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 1.74 | 0.9237 | 1.60 | 1.60 |
| 2 | 1.77 | 0.8531 | 1.51 | 3.12 |
| 3 | 1.81 | 0.7880 | 1.42 | 4.54 |
| 4 | 1.84 | 0.7278 | 1.34 | 5.88 |
| 5 | 1.88 | 0.6723 | 1.26 | 7.15 |
| 6 | 1.92 | 0.6209 | 1.19 | 8.34 |
| 7 | 1.96 | 0.5735 | 1.12 | 9.46 |
| 8 | 2.00 | 0.5297 | 1.06 | 10.52 |
| 9 | 2.04 | 0.4893 | 1.00 | 11.52 |
| 10 | 2.08 | 0.4519 | 0.94 | 12.45 |
| 11 | 2.13 | 0.4174 | 0.89 | 13.34 |
| 12 | 2.18 | 0.3856 | 0.84 | 14.18 |
| 13 | 2.24 | 0.3561 | 0.80 | 14.98 |
| 14 | 2.29 | 0.3289 | 0.75 | 15.73 |
| 15 | 2.35 | 0.3038 | 0.71 | 16.45 |
| 16 | 2.41 | 0.2806 | 0.68 | 17.12 |
| 17 | 2.47 | 0.2592 | 0.64 | 17.76 |
| 18 | 2.53 | 0.2394 | 0.61 | 18.37 |
| 19 | 2.59 | 0.2211 | 0.57 | 18.94 |
| 20 | 2.66 | 0.2043 | 0.54 | 19.49 |
REVERSE DCF
At $79.48, the market implies a stage-1 growth rate of 22.5%.
MARKET IMPLIES
22.5%
YOUR ASSUMPTION
2.0%
DELTA
+20.5pp
If $79.48 is correct and your other inputs (WACC 8.3%, 10+10y, terminal 2.5%) hold, the market needs KO to grow cash flow at 22.5% annually for the next 10 years.