Stock Valuation Model — DCF, Comparable Multiples & DDM with Automatic Over/Undervaluation Verdict (Excel)
Originally published: 04/07/2026 21:42
Publication number: ELQ-12115-1
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Stock Valuation Model — DCF, Comparable Multiples & DDM with Automatic Over/Undervaluation Verdict (Excel)

A ready-to-use Excel model that estimates a stock's intrinsic value with three independent methods and delivers an instant fair-value verdict.

Description
A complete, decision-ready equity valuation model in a single Excel file.
This template values any listed company using three independent, industry-standard approaches and consolidates them into one weighted fair value, benchmarked against the current market price — so you get a clear over/undervaluation signal, not just a pile of numbers.


Valuation methods included
• Discounted Cash Flow (DCF) — two-stage model with explicit free-cash-flow projection, Gordon terminal value, WACC discounting, and a clean bridge from Enterprise Value to equity value per share.
• Relative valuation (Multiples) — implied price from peer P/E, EV/EBITDA and P/B, with net-debt adjustment.
• Dividend Discount Model (DDM) — Gordon Growth for dividend-paying names, with built-in handling of the Ke ≤ g edge case.


Output
A weighted fair value across the three methods, the percentage gap versus market price (margin of safety), and an automatic traffic-light verdict: undervalued / fairly valued / overvalued.
• Inputs are fully separated from calculations. Only the input cells are editable; all formulas and sheets are password-protected to prevent accidental breakage.
• Adjustable weights let you tailor the blend to the company profile (e.g. zero-weight the DDM for low-yield names).
• A dedicated instructions sheet documents every assumption and where to source it.
. Ships with Apple as example included 

This Best Practice includes
File details Microsoft Excel (.xlsx), 6 sheets. Compatible with Google Sheets and LibreOffice. Includes a personal-use l

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