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CFI-DCF-Model

The document presents a Discounted Cash Flow (DCF) model for educational purposes, detailing assumptions such as tax rate, discount rate, and perpetual growth rate. It includes a financial analysis with projected cash flows, intrinsic value calculations, and instructions for determining net working capital. The content is copyrighted by CFI Education Inc. and is intended solely for educational use.

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ngan
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Download as XLSX, PDF, TXT or read online on Scribd
18 views

CFI-DCF-Model

The document presents a Discounted Cash Flow (DCF) model for educational purposes, detailing assumptions such as tax rate, discount rate, and perpetual growth rate. It includes a financial analysis with projected cash flows, intrinsic value calculations, and instructions for determining net working capital. The content is copyrighted by CFI Education Inc. and is intended solely for educational use.

Uploaded by

ngan
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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DCF Model Strictly Confidential

Table of Contents
DCF Model

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
All content is Copyright material of CFI Education Inc.
https://corporatefinanceinstitute.com/

© 2019 CFI Education Inc.


All rights reserved. The contents of this publication, including but not limited to all written material, content layout, images, formulas, and code, are protected under international copyright and trademark laws.
© Corporate Finance Institute®. All rights reserved.
DCF Model

Assumptions This chart isn't available in your version of Excel.


Tax Rate 25% Cash Flow
Discount Rate 12% $50,000 $47,008 Editing this shape or saving this workbook into a
$43,510 different file format will permanently break the
$45,000 $41,501
Perpetural Growth Rate 3%
$40,000 $37,715 chart.
EV/EBITDA Mulltiple 7.0x $35,000
Transaction Date 12/31/2017 $30,000

Fiscal Year End 6/30/2018 $25,000


$20,000 $17,747
Current Price 25.00 $15,000
Shares Outstanding 20,000 $10,000
Debt 30,000 $5,000
$0
Cash 239,550 2018 2019 2020 2021 2022
Capex 15,000

Discounted Cash Flow Entry 2018 2019 2020 2021 2022 Exit Terminal Value
Date 12/31/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2022 Perpetural Growth
Time Periods 0 1 2 3 4 EV/EBITDA
Year Fraction 0.50 1.00 1.00 1.00 1.00 Average
EBIT 47,814 51,095 55,861 58,693 63,039
Cash Taxes 11,954 12,774 13,965 14,673 15,760
Plus: D&A 15,008 15,005 15,003 15,002 15,001
Less: Capex 15,000 15,000 15,000 15,000 15,000
Less: Changes in NWC 375 611 398 511 272
Unlevered FCF 35,494 37,715 41,501 43,510 47,008
(Entry)/Exit (290,450) 542,129
Transaction CF - 17,747 37,715 41,501 43,510 47,008 542,129
Transaction CF (290,450) 17,747 37,715 41,501 43,510 47,008 542,129

Intrinsic Value Market Value Rate of Return


Enterprise Value 462,983 Market Cap 500,000 Target Price Upside
Plus: Cash 239,550 Plus: Debt 30,000 Internal Rate of Return (IRR
Less: Debt 30,000 Less: Cash 239,550
Equity Value 672,532 Enterprise Value 290,450 Market Value vs Intrinsic Value
Market Value
Equity Value/Share 33.63 Equity Value/Share 25.00 Upside
Intrinsic Value

Instructions
Step 1: Get EBIT and D&A from the income statement This file is for educational purposes only. E&OE
Step 2: Calculate the net working capital
There are two ways to find NWC:
1. NWC = Current Assets (less cash) - Current Liabilities (less debt)
2. NWC = Accounts Receivable + Inventory - Accounts Payable

Corporate Finance Institute®


https://corporatefinanceinstitute.com/
n your version of Excel.

ng this workbook into a


ermanently break the

537,981
546,278
542,129

35%
26%

e vs Intrinsic Value
25.00
8.63
33.63
ucational purposes only. E&OE

orporate Finance Institute®


orporatefinanceinstitute.com/

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