WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 21.41 | 0.8824 | 18.89 | 18.89 |
| 2 | 24.62 | 0.7786 | 19.17 | 38.06 |
| 3 | 28.31 | 0.6870 | 19.45 | 57.51 |
| 4 | 32.56 | 0.6062 | 19.74 | 77.25 |
| 5 | 37.45 | 0.5349 | 20.03 | 97.28 |
| 6 | 43.06 | 0.4719 | 20.32 | 117.60 |
| 7 | 49.52 | 0.4164 | 20.62 | 138.22 |
| 8 | 56.95 | 0.3674 | 20.93 | 159.15 |
| 9 | 65.49 | 0.3242 | 21.23 | 180.38 |
| 10 | 75.32 | 0.2861 | 21.55 | 201.93 |
| 11 | 77.20 | 0.2524 | 19.49 | 221.41 |
| 12 | 79.13 | 0.2227 | 17.62 | 239.04 |
| 13 | 81.11 | 0.1965 | 15.94 | 254.98 |
| 14 | 83.14 | 0.1734 | 14.42 | 269.39 |
| 15 | 85.21 | 0.1530 | 13.04 | 282.43 |
| 16 | 87.35 | 0.1350 | 11.79 | 294.22 |
| 17 | 89.53 | 0.1191 | 10.67 | 304.89 |
| 18 | 91.77 | 0.1051 | 9.65 | 314.54 |
| 19 | 94.06 | 0.0927 | 8.72 | 323.26 |
| 20 | 96.41 | 0.0818 | 7.89 | 331.15 |
REVERSE DCF
At $593.41, the market implies a stage-1 growth rate of 24.1%.
MARKET IMPLIES
24.1%
YOUR ASSUMPTION
15.0%
DELTA
+9.1pp
If $593.41 is correct and your other inputs (WACC 13.3%, 10+10y, terminal 2.5%) hold, the market needs META to grow cash flow at 24.1% annually for the next 10 years.