Fin-wiser Advisory has developed the single sheet Discounted Cash Flow (DCF) Template to helps user to understand the dynamics of Discounted Cash Flow (DCF) valuation.
This template is designed to include one Actual period and ten forecast periods.
User can input various assumptions around Revenue Growth Rate, EBITDA Margin, Capital Expenditure, Working Capital Requirement and Depreciation & Amortization as a % of Revenue and other DCF components like Discount Rate, Terminal Growth Rate and Tax Rate to understand their impact on Intrinsic Value.
1. Free Cash Flow to Firms (FCFF) using the conventional equation starting from EBIT and adjusting for Taxes, Depreciation & Amortization, Capital Expenditure and Change in Working Capital.
2. Discount Rate for the calculation of present value of FCFF
3. Terminal Values based on perpetual growth rate
4. Enterprise Value
5. Implied Valuation Multiple like 'Enterprise Value/Revenue' and 'Enterprise Value/EBITDA'
User has the option to calculated discount rate and perpetual growth rate for three different steps to asses the impact of change in rate on terminal value.
Objective of this template is to appraise user with the discounted cash flow fundamentals and should not be used for valuation in real world scenario.
Yellow Color cells represents assumptions cells and white color cells with black text represents calculation cells.