WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 24.13 | 0.8988 | 21.69 | 21.69 |
| 2 | 27.75 | 0.8078 | 22.41 | 44.10 |
| 3 | 31.91 | 0.7260 | 23.17 | 67.27 |
| 4 | 36.70 | 0.6525 | 23.94 | 91.21 |
| 5 | 42.20 | 0.5865 | 24.75 | 115.96 |
| 6 | 48.53 | 0.5271 | 25.58 | 141.54 |
| 7 | 55.81 | 0.4737 | 26.44 | 167.98 |
| 8 | 64.18 | 0.4258 | 27.33 | 195.31 |
| 9 | 73.81 | 0.3827 | 28.25 | 223.55 |
| 10 | 84.88 | 0.3439 | 29.19 | 252.75 |
| 11 | 87.00 | 0.3091 | 26.89 | 279.64 |
| 12 | 89.18 | 0.2778 | 24.78 | 304.42 |
| 13 | 91.41 | 0.2497 | 22.82 | 327.24 |
| 14 | 93.69 | 0.2244 | 21.03 | 348.27 |
| 15 | 96.03 | 0.2017 | 19.37 | 367.64 |
| 16 | 98.44 | 0.1813 | 17.85 | 385.49 |
| 17 | 100.90 | 0.1629 | 16.44 | 401.92 |
| 18 | 103.42 | 0.1464 | 15.14 | 417.07 |
| 19 | 106.00 | 0.1316 | 13.95 | 431.02 |
| 20 | 108.65 | 0.1183 | 12.85 | 443.87 |
REVERSE DCF
At $299.40, the market implies a stage-1 growth rate of 9.0%.
MARKET IMPLIES
9.0%
YOUR ASSUMPTION
15.0%
DELTA
-6.0pp
If $299.40 is correct and your other inputs (WACC 11.3%, 10+10y, terminal 2.5%) hold, the market needs RY.TO to grow cash flow at 9.0% annually for the next 10 years.