COMPANY RESEARCH DCF VALUATION
Company valuation
Search a company, build a forecast, and examine what drives its value.
ESTIMATED VALUE BASE CASE
$118.78/ share
Five-year discounted cash flow · FY2025 model anchor
9.0% WACC2.5% terminal growthUSD
$
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and run a reverse DCF.
Enterprise value$1,721.1B
Present value of operating cash flows
Equity value$1,754.8B
After net debt & bridge adjustments
Terminal share of EV71.6%
How much value comes after year 5
Cash flow, year by year
Your operating assumptions translated into value.
Five-year forecast
USD millions| Operating model | FY2026E | FY2027E | FY2028E | FY2029E | FY2030E |
|---|---|---|---|---|---|
| Revenue growth | 5.0% | 5.0% | 4.0% | 4.0% | 3.0% |
| Revenue | 436,969 | 458,818 | 477,170 | 496,257 | 511,145 |
| EBIT | 139,830 | 146,822 | 152,694 | 158,802 | 163,566 |
| Cash tax on EBIT | 22,373 | 23,491 | 24,431 | 25,408 | 26,171 |
| NOPAT | 117,457 | 123,330 | 128,263 | 133,394 | 137,396 |
| + Depreciation & amortization | 12,235 | 12,847 | 13,361 | 13,895 | 14,312 |
| − Capital expenditure | 13,546 | 14,223 | 14,792 | 15,384 | 15,845 |
| − Change in selected NWC + other | -12 | -13 | -11 | -11 | -9 |
| Free cash flow to firm | 116,158 | 121,966 | 126,842 | 131,916 | 135,871 |
| Present value of FCFF | 106,567 | 102,657 | 97,946 | 93,453 | 88,307 |
Enterprise → equity
- Enterprise value
- $1,721.1B
- + Cash & marketable securities
- $132.4B
- + Other non-operating assets
- $0B
- − Interest-bearing debt
- $98.7B
- − Other claims
- $0B
- Equity value
- $1,754.8B
Divided by 14,773 million shares, including your dilution adjustment.
A closer look at terminal value
- Year 6 NOPAT
- $140.8B
- Required net reinvestment
- $17.6B
- Year 6 FCFF
- $123.2B
- PV of terminal value
- $1,232.1B
Terminal reinvestment = NOPAT × growth / ROIC. Review the transition from forecast investment to mature investment.
Your research notes
Explain why your assumptions make sense.