WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 12.16 | 0.9121 | 11.09 | 11.09 |
| 2 | 12.95 | 0.8319 | 10.77 | 21.86 |
| 3 | 13.78 | 0.7588 | 10.46 | 32.32 |
| 4 | 14.67 | 0.6921 | 10.16 | 42.47 |
| 5 | 15.62 | 0.6313 | 9.86 | 52.34 |
| 6 | 16.63 | 0.5758 | 9.58 | 61.91 |
| 7 | 17.71 | 0.5252 | 9.30 | 71.21 |
| 8 | 18.85 | 0.4790 | 9.03 | 80.25 |
| 9 | 20.07 | 0.4369 | 8.77 | 89.02 |
| 10 | 21.37 | 0.3985 | 8.52 | 97.53 |
| 11 | 21.91 | 0.3635 | 7.96 | 105.50 |
| 12 | 22.45 | 0.3316 | 7.44 | 112.94 |
| 13 | 23.01 | 0.3024 | 6.96 | 119.90 |
| 14 | 23.59 | 0.2758 | 6.51 | 126.41 |
| 15 | 24.18 | 0.2516 | 6.08 | 132.49 |
| 16 | 24.78 | 0.2295 | 5.69 | 138.18 |
| 17 | 25.40 | 0.2093 | 5.32 | 143.50 |
| 18 | 26.04 | 0.1909 | 4.97 | 148.47 |
| 19 | 26.69 | 0.1741 | 4.65 | 153.11 |
| 20 | 27.36 | 0.1588 | 4.35 | 157.46 |
REVERSE DCF
At $400.14, the market implies a stage-1 growth rate of 20.3%.
MARKET IMPLIES
20.3%
YOUR ASSUMPTION
6.5%
DELTA
+13.8pp
If $400.14 is correct and your other inputs (WACC 9.6%, 10+10y, terminal 2.5%) hold, the market needs V to grow cash flow at 20.3% annually for the next 10 years.