WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 5.74 | 0.9241 | 5.31 | 5.31 |
| 2 | 6.61 | 0.8539 | 5.64 | 10.95 |
| 3 | 7.60 | 0.7891 | 5.99 | 16.94 |
| 4 | 8.74 | 0.7292 | 6.37 | 23.31 |
| 5 | 10.05 | 0.6738 | 6.77 | 30.08 |
| 6 | 11.55 | 0.6227 | 7.19 | 37.27 |
| 7 | 13.29 | 0.5754 | 7.64 | 44.92 |
| 8 | 15.28 | 0.5317 | 8.12 | 53.04 |
| 9 | 17.57 | 0.4913 | 8.63 | 61.67 |
| 10 | 20.20 | 0.4540 | 9.17 | 70.85 |
| 11 | 20.71 | 0.4195 | 8.69 | 79.53 |
| 12 | 21.23 | 0.3877 | 8.23 | 87.76 |
| 13 | 21.76 | 0.3583 | 7.80 | 95.56 |
| 14 | 22.30 | 0.3311 | 7.38 | 102.94 |
| 15 | 22.86 | 0.3059 | 6.99 | 109.94 |
| 16 | 23.43 | 0.2827 | 6.62 | 116.56 |
| 17 | 24.02 | 0.2612 | 6.27 | 122.83 |
| 18 | 24.62 | 0.2414 | 5.94 | 128.78 |
| 19 | 25.23 | 0.2231 | 5.63 | 134.41 |
| 20 | 25.86 | 0.2061 | 5.33 | 139.74 |
REVERSE DCF
At $160.06, the market implies a stage-1 growth rate of 16.9%.
MARKET IMPLIES
16.9%
YOUR ASSUMPTION
15.0%
DELTA
+1.9pp
If $160.06 is correct and your other inputs (WACC 8.2%, 10+10y, terminal 2.5%) hold, the market needs SAP.DE to grow cash flow at 16.9% annually for the next 10 years.