DCF Valuation and Sensitivity Analysis (10-years)
Originally published: 23/06/2024 23:55
Publication number: ELQ-56799-1
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DCF Valuation and Sensitivity Analysis (10-years)

This template provides a comprehensive framework for performing a Discounted Cash Flow (DCF) analysis and business valuation for any type of business/industry.

Description
Introduction


This template provides a structured approach to performing a Discounted Cash Flow (DCF) analysis and business valuation. It is applicable to any type of business or industry. Follow the steps outlined (inseide the modell) to conduct a thorough valuation. The assumptions are both for the Tax base and accounting base. The time horizon is for ten years.


Inputs

Revenues:
Calculate the annual revenues according to sales volume growth, the number of days per year, and the unit price.
Cost Schedule: Calculate the variable and fixed costs.
CapEX: Calculate the Tax-base and accounting-base depreciation.
Drivers: Drivers for scenarios analysis


Outputs

Financial Statement: According to scenarios analysis and current/deferred base taxes.
Tax Schedule: Calculate current and deferred base taxes, as well as the effects of taxation due to the interest rate.
Supporting Schedule: Working capital assumptions and debt schedule
WACC: Calculation of Weighted average cost of capital
UFCF: Calculation of Unlevered free cash flow
DCF Valuation: Calculation of Discounted Cashflow with tho methods.
Sensitivities: Sensitivities of DCF valuation for two methods.


Help & Support

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This Best Practice includes
1 excel file

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