WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 12.48 | 0.9158 | 11.43 | 11.43 |
| 2 | 13.29 | 0.8386 | 11.15 | 22.58 |
| 3 | 14.15 | 0.7680 | 10.87 | 33.45 |
| 4 | 15.07 | 0.7033 | 10.60 | 44.04 |
| 5 | 16.04 | 0.6441 | 10.33 | 54.37 |
| 6 | 17.08 | 0.5898 | 10.07 | 64.45 |
| 7 | 18.18 | 0.5401 | 9.82 | 74.27 |
| 8 | 19.36 | 0.4946 | 9.58 | 83.84 |
| 9 | 20.61 | 0.4530 | 9.34 | 93.18 |
| 10 | 21.94 | 0.4148 | 9.10 | 102.28 |
| 11 | 22.49 | 0.3799 | 8.54 | 110.83 |
| 12 | 23.05 | 0.3479 | 8.02 | 118.85 |
| 13 | 23.63 | 0.3186 | 7.53 | 126.38 |
| 14 | 24.22 | 0.2918 | 7.07 | 133.44 |
| 15 | 24.83 | 0.2672 | 6.63 | 140.08 |
| 16 | 25.45 | 0.2447 | 6.23 | 146.30 |
| 17 | 26.08 | 0.2241 | 5.84 | 152.15 |
| 18 | 26.74 | 0.2052 | 5.49 | 157.63 |
| 19 | 27.40 | 0.1879 | 5.15 | 162.78 |
| 20 | 28.09 | 0.1721 | 4.83 | 167.62 |
REVERSE DCF
At $366.59, the market implies a stage-1 growth rate of 18.0%.
MARKET IMPLIES
18.0%
YOUR ASSUMPTION
6.5%
DELTA
+11.5pp
If $366.59 is correct and your other inputs (WACC 9.2%, 10+10y, terminal 2.5%) hold, the market needs V to grow cash flow at 18.0% annually for the next 10 years.