WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 24.39 | 0.9147 | 22.31 | 22.31 |
| 2 | 24.88 | 0.8366 | 20.82 | 43.13 |
| 3 | 25.38 | 0.7652 | 19.42 | 62.55 |
| 4 | 25.89 | 0.6999 | 18.12 | 80.67 |
| 5 | 26.40 | 0.6402 | 16.90 | 97.57 |
| 6 | 26.93 | 0.5855 | 15.77 | 113.34 |
| 7 | 27.47 | 0.5356 | 14.71 | 128.05 |
| 8 | 28.02 | 0.4899 | 13.73 | 141.78 |
| 9 | 28.58 | 0.4481 | 12.81 | 154.59 |
| 10 | 29.15 | 0.4098 | 11.95 | 166.53 |
| 11 | 29.88 | 0.3748 | 11.20 | 177.73 |
| 12 | 30.63 | 0.3429 | 10.50 | 188.23 |
| 13 | 31.39 | 0.3136 | 9.85 | 198.08 |
| 14 | 32.18 | 0.2868 | 9.23 | 207.31 |
| 15 | 32.98 | 0.2624 | 8.65 | 215.96 |
| 16 | 33.81 | 0.2400 | 8.11 | 224.08 |
| 17 | 34.65 | 0.2195 | 7.61 | 231.68 |
| 18 | 35.52 | 0.2008 | 7.13 | 238.81 |
| 19 | 36.41 | 0.1836 | 6.69 | 245.50 |
| 20 | 37.32 | 0.1679 | 6.27 | 251.76 |
REVERSE DCF
At $409.14, the market implies a stage-1 growth rate of 9.3%.
MARKET IMPLIES
9.3%
YOUR ASSUMPTION
2.0%
DELTA
+7.3pp
If $409.14 is correct and your other inputs (WACC 9.3%, 10+10y, terminal 2.5%) hold, the market needs UNH to grow cash flow at 9.3% annually for the next 10 years.