Free Cash Flow for the Firm (FCFF) Stable Growth Excel Model

An Excel FCFF Excel Model to Value a stable firm on the basis of free cashflows to firm.

by Prof. Aswath Damodaran
Professor at NYU Stern School of BusinessFollow 1,007

with NYU Stern School of Business
An Education in PossibleFollow 50

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Description
A stable growth FCFF discount excel model.

User defined inputs.

The user has to define the following inputs to the model:
1. Current EBIT and tax rate
2. Capital Spending and Depreciation
3. Change in working capital
4. Debt ratio
5. Cost of Equity or Inputs to the CAPM (Beta, Riskfree rate, Risk Premium) and Cost of Debt
6. Expected Growth Rate in free cashflows to firm forever.

- Prof. Aswath Damodaran

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This Best Practice includes
1 Excel Model File