10 Years Financial Forecast and Valuation Excel Model

Three statement financial model to forecast the Company's P&L account, BS, Cash Flow and Company's Valuation

by Jair Almeida
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Description
Excel Financial Model & Valuation.

This is a generic three statement financial model that allows the user to forecast the Company's profit and loss account, balance sheet and cash flow statement, and it also estimates the value of your company/Investment using the DCF method (Free Cash Flow approach).

It was built as flexible as possible for a generic model so that it might fit a large range of Companies and industries. The tabs provided can be split into two main categories:

1. Input tabs:
A) General inputs - in this tab you will enter general information such as display currency, valuation date, forecast years;
B) Income Statement- in this tab the user can enter the Income Statement items;
C) Balance Sheet - in this tab one can enter the historical balance sheet items;
D) Cash Flow- in this tab you can enter the historical Cash Flow Statement items;
E) Forecast Input:
• In this tab you can enter Up to 26 Drivers for the different forecast outputs.
• The user can, in a very easy way, module 5 scenarios.
• The automatic scenario is evaluated through the historical data.
• The majority of the drivers are the same for the different scenarios, excepting for the Absolute scenario Case, where the user must input the values accordingly;
• However, there are drivers for which is only possible the absolute numbers approach, so in those cases the absolute numbers are the same for all scenarios;
• The user can input for the main drivers (i.e. Revenues, Opex, Capex) the Growth % for the Base, Conservative and Stress Scenarios;
e) DCF Valuation - It is based on free cash flow to equity and consequently the discount rate used is the WACC. The only area you should pay attention is the yellow one, (by inputting the WACC %;

2. Output tabs:
A) Forecast Fin. Statement (Including Balance Sheet, Cash Flow Statement and Income Statement);
B) Forecast Fin. Highlights (containing the major financial ratios, covering Balance Structure, Debt Equity, Liquidity, Working capital, etc)
C) Cases Overview, it allowed the comparison of the different scenarios that one module in the Forecast Input Sheet (including the comparison between the Net Income, EBITDA, Free Cash Flow, Balance structure, Earnings per Share P/E, Share price, etc)

This is a very powerful tool that will allow you to create accurate forecasts for your Company (or Investment) in order to see its performance at any given time. The valuation part of the model allows you to easily estimate the value of the Company at any given time, based on your own projections. This is a great way to assess your risks and opportunities in multiple situations.

Should you have any questions, please feel free to contact.

This business tool includes
1 Excel Model