Publication number: ELQ-52155-1
View all versions & Certificate
Discounted Cash Flow (DCF) Model Excel Template
This is a valuation tool known as the DCF model. This is an Excel template.
One method an investor could use to determine the value of a company involves conducting a discounted cash flow analysis.
An example of a series of assumptions an investor could use to calculate a companies intrinsic value under the Three-Stage DCF, for example, are:
1: an initial cash flow of $10,000
2: a discount rate of 15% (the user should insert his required return here)
3: cash flows grow at a 14% rate for the first 5 years, a 10% rate for the next 5 years, and a 5% rate for the final 5 year period
4: the investor uses a terminal growth rate of 3%
5: the company has 10,000 shares outstanding and pays no dividends.
Boxes that are highlighted in black are where users can plug in their own assumptions
As the name implies, a companies future cash flows are discounted back to the present to derive what a valuation for the company in question. The DCF Model is certainly not a perfect valuation tool (as it is very difficult to predict what a company will grow its cash flows at), but it can provide one estimate of value that, when combined with all the other components of a users research on a company, can help give an idea of what a company is worth. The user should also keep in mind that the Intrinsic Value that is produced is only as good as the numbers put into the model. If you assume unrealistic growth rates (or terminal value) you will get an unrealistic intrinsic value result. The investor should think of the Intrinsic Value figure given in this light: you need to pay the price given, or lower, in order to achieve a given return (i.e. the discount rate) on your investment if your assumptions are correct.
This business tool includes
1 DCF Model Template in Excel
Richard M. Rockwood offers you this business tool for free!
download for free
Add to bookmarks
- No review yet!
People using this tool also downloaded
Discount Cash Flow Template in ExcelThis is a discounted cash flow (DCF) template with income statement, balance sheet, FCF calculation & FV calculation.cash flowdcfdiscounted cash flowexcelinvestor371free by Andrew Han
Quick valuation: Net present value (NPV) CalculatorA calculator for a quick net present value (NPV) calculation for valuing a businessdcfdiscounted cash flownet present valuenpvvaluation340$15.00 by ModellingGuy
"La Doria" Excel Valuation ModelValuation Model of La Doria (public company)dcfdiscounted cash flowexcella doriapublic company116
DCF Model with Bear and Bull Scenarios in ExcelA DCF model built for public equity valuations, with a bull and bear scenario analysis to evaluate upside/downside riskdcfdiscounted cash flowequitymodelpublic equities1,513$20.00 by Colin Ferrian
Discounted Cash Flow (DCF) ModelA step by step Discounted Cash Flow Analysis Tutorial (DCF model)analysisdcfdcf modeldiscounted cash flowfinance33,260
Discounted Cash Flow (DCF) Analysis with IRR and NPVSeveral spreadsheets that can be used for the analysis of a real estate investment from various perspectivesacquisitioncash flowdcfdiscounted cash flowfinance13,226$20.00 by Prof. Norm Miller PhD
Business Valuation Excel Model with Economic Value AddedBusiness and investment valuation model with economic value added (EVA) calculations.dcfdiscounted cash floweconomic value addedevafinance1,264
DCF (Discounted Cash Flow) Excel Monte Carlo Simulation ModelA simplified DCF (Discounted Cash Flow) Monte Carlo Simulation model in Exceldcfdiscounted cash flowexcel vbahans ensingmonte carlo1,572free by Hans Ensing
Discounted Cash Flow (DCF) Model Template + InstructionsLearn how to build a simple DCF Model aligned with Investment Banking best practices.dcfdcf modeldiscounted cash flowexcelhow to633free by Wall Street Prep
Discounted Cash Flow (DCF) Model (Academic Quality)A simple DCF model serving as an academic exercise to understand how financial modeling works.corporate financedcfdiscounted cash flowfinancemba1,641free by Joshua Wong
Any questions on Discounted Cash Flow (DCF) Model Excel Template?
The user community and author are here to help. Go ahead!