Which factor has the greatest impact in a DCF valuation among an increase in revenue, cash OpEx, and changes in NWC?

In a Discounted Cash Flow (DCF) valuation, revenue has the most significant impact on the valuation because it directly affects future cash flows, which are the foundation of the DCF model. An increase in revenue typically leads to higher operating income, thereby increasing cash flows available to investors.

While changes in working capital (NWC) and cash operating expenses (OpEx) also play important roles, they tend to be secondary to revenue. Changes in NWC can affect cash flows, particularly in terms of cash tied up in inventory or accounts receivable, but these are often adjustments to how quickly revenue translates into cash. Similarly, cash OpEx influences profitability but cannot create value in the absence of revenue. In a DCF model, the future cash flows generated from increased revenue create a more substantial impact on the overall valuation when discounted back to their present value.

Therefore, the significant influence of revenue on future cash flows establishes it as the most critical factor among the options provided. The other elements, while important for understanding operational efficiency and cash management, ultimately serve to adjust the resulting valuation based on the changes in revenue generation.