WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 4.55 | 0.8755 | 3.98 | 3.98 |
| 2 | 5.23 | 0.7666 | 4.01 | 8.00 |
| 3 | 6.02 | 0.6712 | 4.04 | 12.04 |
| 4 | 6.92 | 0.5876 | 4.07 | 16.10 |
| 5 | 7.96 | 0.5145 | 4.09 | 20.20 |
| 6 | 9.15 | 0.4505 | 4.12 | 24.32 |
| 7 | 10.53 | 0.3944 | 4.15 | 28.47 |
| 8 | 12.10 | 0.3453 | 4.18 | 32.65 |
| 9 | 13.92 | 0.3023 | 4.21 | 36.86 |
| 10 | 16.01 | 0.2647 | 4.24 | 41.10 |
| 11 | 16.41 | 0.2318 | 3.80 | 44.90 |
| 12 | 16.82 | 0.2029 | 3.41 | 48.31 |
| 13 | 17.24 | 0.1777 | 3.06 | 51.38 |
| 14 | 17.67 | 0.1556 | 2.75 | 54.13 |
| 15 | 18.11 | 0.1362 | 2.47 | 56.59 |
| 16 | 18.56 | 0.1192 | 2.21 | 58.81 |
| 17 | 19.03 | 0.1044 | 1.99 | 60.79 |
| 18 | 19.50 | 0.0914 | 1.78 | 62.58 |
| 19 | 19.99 | 0.0800 | 1.60 | 64.18 |
| 20 | 20.49 | 0.0701 | 1.44 | 65.61 |
REVERSE DCF
At $437.21, the market implies a stage-1 growth rate of 45.1%.
MARKET IMPLIES
45.1%
YOUR ASSUMPTION
15.0%
DELTA
+30.1pp
If $437.21 is correct and your other inputs (WACC 14.2%, 10+10y, terminal 2.5%) hold, the market needs TSM to grow cash flow at 45.1% annually for the next 10 years.