Simple Discounted Cashflow (DCF) Excel Model Template

Description
This simple 1-sheet model is ideal to quickly calculate the the "fair" value per share of a company based on the discounted cashflow methodology based on simple assumptions.

You can control the inputs such as initial sales, revenue growth, EBIT Margin, Tax rate, Working Capital Investment, Capital Expenditures (Capex), Depreciation, Free Cash Flow Terminal Growth Rate, Number of Shares, Current Share Price, CAPM Required ROE (Risk Free Rate, Risk Premium and Beta), Amount of Debt and Equity, Cost of Debt and Tax.

The model also includes sensitivity analysis to check how the derived Equity Price changes when certain inputs change which ideal to perform a stress test on your assumptions. We check the sensitivity of the Derived DFC Price per share to inputs such as Weighted Average Cost of Capital (WACC) and Terminal Growth Rate of Cash Flow.

A separate section has been created for the Weighted Average Cost of Capital Calculations in the Model Sheet. Note that only the Target Capital Structure (Market Value of Debt and Equity) are being used in the model. the Current Capital Structure is only used as a reference.

Please note that this model is not ideal for input in the decision making process and it doesn't incorporate detailed analysis. A very comprehensive model (available on request) should be used instead for detailed calculations and precise valuation.

City Research 2019