Methodology for Full DCF & EVA and DCF for Equity MODELS with comparison DCF FOR EQUITY MODEL
Originally published: 25/01/2021 15:14
Publication number: ELQ-63622-1
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Methodology for Full DCF & EVA and DCF for Equity MODELS with comparison DCF FOR EQUITY MODEL

Comprehensive breakdown of my model Complete EVA & DCF Model (Economic Value Added & Discounted Cash Flow) & How to Use

This unique model is a combined Economic Value Added (EVA) and Discounted Cash Flow (DCF) model that is different from any other, containing a new and different technique. It focuses on company performance in detail to help businesses to understand the know-how behind creating value. The model goes directly to company performance in an easy, understandable way with full transparency, so companies know where each dollar is coming from and where it will be spent in the business. The model contains 2 main parts: Discount Cash Flow model (DCF) and Economic Value-Added model (EVA). Together they give the most accurate company value. The Economic Value Added (EVA) is preferable because it shows how much value has been and will be created (or destroyed) by the allocation and management of capital. The advantage of the economic profit model (EVA) over the DCF model is that the economic profit model is a useful measure for understanding company performance in any single year, while free cash flow model is not.

Combining the two models allows companies to see the inner working of a company’s performance for each year step by step (opening the black box of the company) or to get a snapshot of performance each year. I use the expression “opening the black box” because it’s true and is something you won’t have seen before in any valuation model. This model has been handmade and perfected. If you put your data in the Balance Sheet and Income Statement, the model works automatically without the user needing to make any amendments. This will give you the correct value of the business. You will get equal values of the company from both models (enterprise’s strategic value) - you can see from the screenshots that net income in ROIC analysis will be the same as net income from Income Statement, as the featured model proves at the bottom line i.e., net income. Combined Model Contain Four Excel Sheet Covered All possible Scenarios& Power Point presentation.

This detailed 73 slide PowerPoint Presentation Methodology is made to help you understand the background and theories behind the model 'Complete EVA & DCF Model (Economic Value Added & Discounted Cash Flow)', with the aim of enabling you to use the model to its full potential.

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This presentation's aim is to help you to understand my Complete EVA & DCF Model (Economic Value Added & Discounted Cash Flow) and use it to its full potential.

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