This is an unlevered Free Cash Flow to Firm (FCFF) model with a 10-year projection period. Revenue is projected using analyst consensus estimates for the first 3–5 years, then gradually fading toward long-term GDP growth (~3%) for the remaining years. Expenses, D&A, and working capital follow the same line-by-line approach as the 5-year variant. The terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 11 EBITDA.
The longer 10-year horizon reduces the weight of the terminal value in the total enterprise value, making the model less sensitive to the exit multiple assumption. This approach combines the advantages of detailed FCFF modeling with a market-anchored exit, providing a more robust valuation for companies where long-term fundamentals are expected to converge toward industry norms. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.