WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 24.22 | 0.8999 | 21.80 | 21.80 |
| 2 | 27.85 | 0.8099 | 22.56 | 44.35 |
| 3 | 32.03 | 0.7288 | 23.34 | 67.70 |
| 4 | 36.83 | 0.6559 | 24.16 | 91.86 |
| 5 | 42.36 | 0.5902 | 25.00 | 116.86 |
| 6 | 48.71 | 0.5312 | 25.88 | 142.74 |
| 7 | 56.02 | 0.4780 | 26.78 | 169.51 |
| 8 | 64.42 | 0.4302 | 27.71 | 197.23 |
| 9 | 74.09 | 0.3871 | 28.68 | 225.91 |
| 10 | 85.20 | 0.3484 | 29.68 | 255.59 |
| 11 | 87.33 | 0.3135 | 27.38 | 282.97 |
| 12 | 89.51 | 0.2821 | 25.26 | 308.23 |
| 13 | 91.75 | 0.2539 | 23.30 | 331.53 |
| 14 | 94.05 | 0.2285 | 21.49 | 353.02 |
| 15 | 96.40 | 0.2056 | 19.82 | 372.84 |
| 16 | 98.81 | 0.1851 | 18.29 | 391.13 |
| 17 | 101.28 | 0.1665 | 16.87 | 407.99 |
| 18 | 103.81 | 0.1499 | 15.56 | 423.55 |
| 19 | 106.40 | 0.1349 | 14.35 | 437.90 |
| 20 | 109.06 | 0.1214 | 13.24 | 451.14 |
REVERSE DCF
At $285.76, the market implies a stage-1 growth rate of 8.0%.
MARKET IMPLIES
8.0%
YOUR ASSUMPTION
15.0%
DELTA
-7.0pp
If $285.76 is correct and your other inputs (WACC 11.1%, 10+10y, terminal 2.5%) hold, the market needs RY.TO to grow cash flow at 8.0% annually for the next 10 years.