WACC
PREDICTABILITY
GROWTH WINDOWS
FCF PROJECTION
SENSITIVITY
PER-YEAR CASH FLOWS
| Year | CF | Discount factor | PV | Cumulative PV |
|---|---|---|---|---|
| 1 | 12.48 | 0.9165 | 11.44 | 11.44 |
| 2 | 13.29 | 0.8400 | 11.16 | 22.61 |
| 3 | 14.15 | 0.7699 | 10.89 | 33.50 |
| 4 | 15.07 | 0.7056 | 10.63 | 44.13 |
| 5 | 16.04 | 0.6467 | 10.37 | 54.51 |
| 6 | 17.08 | 0.5927 | 10.12 | 64.63 |
| 7 | 18.18 | 0.5433 | 9.88 | 74.51 |
| 8 | 19.36 | 0.4979 | 9.64 | 84.14 |
| 9 | 20.61 | 0.4563 | 9.41 | 93.55 |
| 10 | 21.94 | 0.4182 | 9.18 | 102.73 |
| 11 | 22.49 | 0.3833 | 8.62 | 111.35 |
| 12 | 23.05 | 0.3513 | 8.10 | 119.45 |
| 13 | 23.63 | 0.3220 | 7.61 | 127.06 |
| 14 | 24.22 | 0.2951 | 7.15 | 134.21 |
| 15 | 24.83 | 0.2705 | 6.72 | 140.92 |
| 16 | 25.45 | 0.2479 | 6.31 | 147.23 |
| 17 | 26.08 | 0.2272 | 5.93 | 153.16 |
| 18 | 26.74 | 0.2082 | 5.57 | 158.72 |
| 19 | 27.40 | 0.1909 | 5.23 | 163.95 |
| 20 | 28.09 | 0.1749 | 4.91 | 168.87 |
REVERSE DCF
At $323.57, the market implies a stage-1 growth rate of 16.0%.
MARKET IMPLIES
16.0%
YOUR ASSUMPTION
6.5%
DELTA
+9.6pp
If $323.57 is correct and your other inputs (WACC 9.1%, 10+10y, terminal 2.5%) hold, the market needs V to grow cash flow at 16.0% annually for the next 10 years.