Valuation Financial Model based on Discounted Cashflows to Firm and Cashflows to Equity and Discount Rate Framework

Description
This valuation financial model (FM) tool allows users to project and forecast a Company's Statement of Profit and Loss account, Statement of Financial Position (Balance Sheet), and Statement of Cash Flow for 45 years, ascertain the equity funding gap or requirements, and compute based on CAPM framework the appropriate discount rate to be used for the financial valuation. Being a generic model, users can easily customise the FM to fit almost any company, sector and industry. This valuation tool will help the user to easily determine the financial enterprise and equity valuation of the projects under evaluation using discounted cash flow methodology.


The financial model consists of the following:
1) Project Details and Valuation tab which includes:
a) Project parameters – contains all the key model parameters
b) Macro assumptions – contains the key forex and inflation assumptions together with sensitivity analysis functions
c) Workings – contains the calculations/schedules for
i. Revenue (including sensitivity analysis)
ii. Operating expenses
iii. Capex and depreciation schedule
iv. Debt schedule (based on semi-annual and annual timeline)
v. Working capital
vi. Taxation (including the utilisation of carried forward of losses)
d) Financial statements
i. Statement of Profit and Loss (P&L),
ii. Statement of Financial Position (Balance Sheet), and
e) Valuation summary
i. Enterprise valuation (EV) based on discounted free cash flows to firm (FCFF)
ii. Equity valuation (EqV) based on discounted free cash flows to equity (FCFE)
iii. Valuation multiples (such as EV/EBITDA, EqV/Earnings (FCFF), EqV/Earnings (FCFE))
2) Discount Rate Computation tab
a) Computation of cost of equity (COE) and weighted average cost of capital (WACC) based on Capital Asset Pricing Model (CAPM) using parameters such as risk free rate, equity risk premium, beta, country risk premium


The FM does not include financial ratio analyses nor graphical illustrations of the output.