Economic Value Added (EVA) vs Cost of Capital Discounted Cash Flow (DCF) Valuation Excel Model
  • Economic Value Added (EVA) vs Cost of Capital Discounted Cash Flow (DCF) Valuation Excel Model
  • Economic Value Added (EVA) vs Cost of Capital Discounted Cash Flow (DCF) Valuation Excel Model
Originally published: 11/07/2016 13:07
Last version published: 02/02/2018 14:49
Publication number: ELQ-14221-2
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Economic Value Added (EVA) vs Cost of Capital Discounted Cash Flow (DCF) Valuation Excel Model

Excel Tool for reconciling EVA (Economic Value Added) and DCF (Discounted Cash Flow) valuation models

dcfevafinancereconcilevaluation

Description
The user must define the following inputs:
- Growth rate in revenues for the next 5 years
- All operating expenses as a % of revenues in the fifth year
- Debt do you plan to use in financing investments
- Growth rate in capital expenditures & depreciation
- Working capital as a percent of revenues
- Tax rate that you have on corporate income
- Beta do you use to calculate cost of equity
- Current long term bond rate
- Market risk premium you want to use
- Cost of borrowing money

- Prof. Aswath Damodaran

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This business tool includes
1 Excel model

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Further information

Outputs:
- Estimated cashflows
- Cost of equity and capital
- Firm valuation

Reviews

  • Aakash Garg(last updated: 16/07/2018 13:05)
  • ridwan ridwan39(last updated: 14/07/2018 09:32)
  • Tom Oliveira(last updated: 13/07/2018 02:55)
  • Tingxuan An(last updated: 11/07/2018 07:01)
  • wasim akram(last updated: 05/07/2018 14:47)
  • Pornthep(last updated: 03/07/2018 06:15)
  • Herman Hermawan(last updated: 22/06/2018 10:11)
  • Dogan Pesen(last updated: 15/05/2018 15:08)
  • Paya Danesh(last updated: 13/05/2018 19:16)
  • John Fletcher(last updated: 19/03/2018 14:10)
    Economic Value Added & DCF
    I integrated this spreadsheet into my dcf forecasting model. It is extremely robust and accurate. Very insightful for the role of capital and the true determination of Enterprise Value. Thank you Prof. Aswath Damodaran for producing this valuable tool.
  • Gonzalo Avila Lizeranzu(last updated: 25/11/2017 08:28)

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