Free Cash Flow for the Firm (FCFF) Stable Growth Excel Model
  • Free Cash Flow for the Firm (FCFF) Stable Growth Excel Model
Originally published: 22/06/2016 08:38
Last version published: 02/02/2018 14:49
Publication number: ELQ-32505-2
View all versions & Certificate
certified

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.

fcfffinancefree cash flow for the firmstable growth modelvaluation

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

Side note: If you have appreciated this model, feel free to give it a rating/review!

This business tool includes
1 Excel Model File

Prof. Aswath Damodaran offers you this business tool for free!

download for free

Add to bookmarks

Discuss

Further information

Outputs:
EBIT (1- tax rate)
- (Capital Spending - Depreciation)
- Change in Working Capital
Free Cashflow to Firm

Cost of Equity
Cost of Debt
Cost of Capital
Expected Growth rate

Value of Firm

Best suited for firms growing at the same rate as the economy

Assumptions in the model:
1. The firm is in steady state and will grow at a stable rate forever.
2. The firm's leverage is known and constant.

Reviews


keyboard_arrow_leftkeyboard_arrow_right

More tools from Prof. Aswath Damodaran

See all
keyboard_arrow_leftkeyboard_arrow_right

Any questions on Free Cash Flow For The Firm (FCFF) Stable Growth Excel Model?

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

please wait...