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Sample DCF Valuation Template

This document provides a sample discounted cash flow (DCF) valuation template. It includes assumptions about revenue growth, margins, tax rates, capital expenditures, and the weighted average cost of capital (WACC). It forecasts free cash flows to the firm for 5 years and a terminal year. It calculates the present value of these cash flows to determine an enterprise value of $1,520 billion and equity value of $920 billion, or $57.50 per share. The current market price is $50 per share.

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Tharun Rao
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214 views

Sample DCF Valuation Template

This document provides a sample discounted cash flow (DCF) valuation template. It includes assumptions about revenue growth, margins, tax rates, capital expenditures, and the weighted average cost of capital (WACC). It forecasts free cash flows to the firm for 5 years and a terminal year. It calculates the present value of these cash flows to determine an enterprise value of $1,520 billion and equity value of $920 billion, or $57.50 per share. The current market price is $50 per share.

Uploaded by

Tharun Rao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Sample DCF Valuation Template

Note: Items in RED are calculated automatically

(In $ Billions)
Base year 1 2
Assumptions:
Revenue growth rate 5.0% 6.0%
EBIT (Operating) margin 8.0% 8.0% 8.0%
Tax rate 35.0% 35.0% 35.0%
Depreciation as % of Sales 3.0% 3.0% 3.0%
CAPEX as % of sales 4.0% 4.0% 4.0%
Working Capital ($) 10.0 10.5 11.1
WC as % of Sales 1.0% 1.0% 1.0%
Cost of capital 6.3% 6.3%

Free cash flow to firm ($ millions):


Revenues 1,000 1,050 1,113
EBIT 80 84 89
EBIT(1-tax) 52 55 58
Add: Depreciation 31.5 33.4
Less: CAPEX 42 45
Less: Increase in Working Capital 1 1
FCFF 44 46
Terminal value

Present value:
Cumulative discount factor 0.9409 0.8852
PV of FCFF and TV 41 41

Enterprise value of firm 1,520.0


- Debt 600.0
+ Excess Cash 0.0
+Value of other holdings not included in EV 0.0
Value of equity 920.0
- Misc non-interest paying liabilities not included in Debt 0.0
Value of common equity 920.0
Number of shares outstanding 16.00
Estimated value /share $ 57.50

Market Price today $ 50.00

WACC Equity Debt Preferred


Market values $ 800.0 $ 600.0 $ -
Weights in WACC 57.1% 42.9% 0.0%
Cost of Component (after-tax cost for debt) 8.0% 4.0% 6.0%
Terminal
3 4 5 year

7.0% 7.0% 7.0% 3.0%


8.0% 8.0% 8.0% 8.0%
35.0% 35.0% 35.0% 35.0%
3.0% 3.0% 3.0% 3.0%
4.0% 4.0% 4.0% 4.0%
11.9 12.7 13.6 14.0
1.0% 1.0% 1.0% 1.0%
6.3% 6.3% 6.3% 6.3%

1,191 1,274 1,363 1,404


95 102 109 112
62 66 71 73
35.7 38.2 40.9 42.1
48 51 55 56
1 1 1 0
49 53 56 59
1,783

0.8329 0.7836 0.7373 0.7373


41 41 42 1,314

Capital
$ 1,400.0
100.0%
6.29%

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