Discounted Cash Flow (DCF) Model
  • Discounted Cash Flow (DCF) Model
  • Discounted Cash Flow (DCF) Model
  • Discounted Cash Flow (DCF) Model
  • Discounted Cash Flow (DCF) Model
  • Discounted Cash Flow (DCF) Model
  • Discounted Cash Flow (DCF) Model
  • Discounted Cash Flow (DCF) Model
  • Discounted Cash Flow (DCF) Model
Originally published: 19/09/2016 14:53
Last version published: 05/04/2018 12:30
Publication number: ELQ-10661-11
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Discounted Cash Flow (DCF) Model

A step by step Discounted Cash Flow Analysis Tutorial (DCF model)

analysisdcfdcf modeldiscounted cash flowfinanceinvestment bankingprivate equityvaluationvalue of a business

Description
DCF analysis is a valuation method which uses future cash flow predictions to estimate investment return potential by discounting these projections to a present value approximation and using this to assess the attractiveness of the investment.

This 8-step DCF model template aims to help you calculate the value of a business. Every step is described and you are encouraged to ask questions if you need clarifications.

This DCF model template is all you need, it saves time (don't reinvent the wheel...), and it works!

You'll also find a few other models and tutorials we have put together on our Eloquens Channel here: https://www.eloquens.com/channel/business-valuation-net

Should you have any questions on the model you're welcome to Private Message us via our Eloquens Channel or use the discussion feed below.

Feel free to leave a review and a rating if you have appreciated the model!

- The Business Valuation Team

PS: if you want to access a Premium Version of a DCF Excel Model (including Synergy Valuation) it's here (and built by us): https://www.eloquens.com/tool/xQrUMb/finance/discounted-cash-flow-dcf/synergy-valuation-premium-dcf-excel-model

Enjoy!

This business tool includes
1 Excel Model, 1 Online Methodology

Business-Valuation.net offers you this business tool for free!

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Further information

This DCF model can be used by CFOs, Students, Teachers, Business controllers, M&A analysts, Private Equity analysts etc. The model is easy to use, has a hiqh flexibility and gets the job done.

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Discussion feed for Discounted Cash Flow (DCF) Model

The user community and author are here to help. Go ahead!

  • David Wang
    When you calculate implied exit multiple, why do you multiple the terminal value with (1+WACC)^period? shouldn't the terminal value in cell D63 already be the the value at the terminal year?
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    • Business-Valuation.net
      Good question. It is calculated the way I was taught. I guess both methods will work. Good luck.
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    • David Wang
      is using size premium a market standard? I never learnt to account for the size premium when calculating cost of equity.
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      • Business-Valuation.net
        Different schools are applied also here. It does not make sense to have a very low WACC on a start-up or a very small company, then the value will be too high. There are several ways to adjust WACC such as; size premium, country premium, company-specific premium etc.
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      • David Wang
        shouldn't the discount period 1 instead of 0.5 buz you are discounting by 1 year instead of discounting semi-annually?
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        • Business-Valuation.net
          Mid-year method is applied. You do not receive all cash at the end of the period. Different schools, pick the method you prefer best.
          arrow_drop_uparrow_drop_downReply reply
        • John Hay
          what does WACC stand for
          1arrow_drop_uparrow_drop_downReply reply
        • Anish Rathi
          Hi, where can I find the accompanying step by step methodology for the sheet?
          arrow_drop_uparrow_drop_downReply reply
          • Business-Valuation.net
            Hi Anish,

            Sure! It's really easy.
            1/ Download the DCF Model from this page
            2/ Go to your Library Page on Eloquens
            3/ Click on the Tool Title Link
            4/ You will be on the /details page and from there you will be able to download the file + follow the step by step methodology written just below.

            Hope this helps (feel free to give a rating/review if you have appreciated the model).

            Good luck!
            2arrow_drop_uparrow_drop_downReply reply
        • Rohit
          I did not receive the online methodology document. Can only download the Excel file using the link sent over e-mail. Could you please help?
          arrow_drop_uparrow_drop_downReply reply
        • Tao Yang
          why to remove the model?Can u pls send it to my Email,tks!
          arrow_drop_uparrow_drop_downReply reply
          • Business-Valuation.net
            Dear Tao, I am not sure what you mean. The model is still published?
            1arrow_drop_uparrow_drop_downReply reply
            • Eloquens Team
              Hi Tao,

              If you want to have access to the model, simply click on the big blue button "Download for Free" on this page (see above). The Tool will then be added to your personal Eloquens library. Then, click on the title and you will be re-directed to a page from which you can download the Excel File! (Big Blue Button "Download").

              Let us know if you face any additional issues in the process.

              Best regards,
              The Eloquens Support Team
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