WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 5.74 | 0.9234 | 5.30 | 5.30 |
| 2 | 6.61 | 0.8526 | 5.63 | 10.93 |
| 3 | 7.60 | 0.7873 | 5.98 | 16.91 |
| 4 | 8.74 | 0.7270 | 6.35 | 23.26 |
| 5 | 10.05 | 0.6712 | 6.74 | 30.01 |
| 6 | 11.55 | 0.6198 | 7.16 | 37.17 |
| 7 | 13.29 | 0.5723 | 7.60 | 44.77 |
| 8 | 15.28 | 0.5285 | 8.07 | 52.85 |
| 9 | 17.57 | 0.4880 | 8.57 | 61.42 |
| 10 | 20.20 | 0.4506 | 9.10 | 70.52 |
| 11 | 20.71 | 0.4160 | 8.62 | 79.14 |
| 12 | 21.23 | 0.3842 | 8.15 | 87.29 |
| 13 | 21.76 | 0.3547 | 7.72 | 95.01 |
| 14 | 22.30 | 0.3275 | 7.31 | 102.32 |
| 15 | 22.86 | 0.3024 | 6.91 | 109.23 |
| 16 | 23.43 | 0.2793 | 6.54 | 115.77 |
| 17 | 24.02 | 0.2579 | 6.19 | 121.97 |
| 18 | 24.62 | 0.2381 | 5.86 | 127.83 |
| 19 | 25.23 | 0.2199 | 5.55 | 133.38 |
| 20 | 25.86 | 0.2030 | 5.25 | 138.63 |
REVERSE DCF
At $213.15, the market implies a stage-1 growth rate of 21.2%.
MARKET IMPLIES
21.2%
YOUR ASSUMPTION
15.0%
DELTA
+6.2pp
If $213.15 is correct and your other inputs (WACC 8.3%, 10+10y, terminal 2.5%) hold, the market needs SAP.DE to grow cash flow at 21.2% annually for the next 10 years.