DCF Model

Table of Contents
DCF Model

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
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DCF Model

Assumptions
This chart isn't available i
Tax Rate 30% Cash Flow
Discount Rate 10% $50,000
Editing this shape or savin
$43,856 different file format will p
Perpetural Growth Rate 3% $38,708
$40,576
$40,000 chart.
EV/EBITDA Mulltiple 7.0x $35,160

Transaction Date 12/31/2017 $30,000

Fiscal Year End 6/30/2018
$20,000 $16,552
Current Price 25.00
Shares Outstanding 20,000 $10,000
Debt 130,000
$0
Cash 300,000 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022
Capex 15,000

Discounted Cash Flow Entry 2018 2019 2020 2021 2022 Exit
Date 12/31/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2022
Time Periods 0 1 2 3 4
Year Fraction 0.50 1.00 1.00 1.00 1.00
EBIT 47,814 51,095 55,861 58,693 63,039
Less: Cash Taxes 14,344 15,328 16,758 17,608 18,912
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 33,104 35,160 38,708 40,576 43,856
(Entry)/Exit (330,000) 595,794
Transaction CF (330,000) 16,552 35,160 38,708 40,576 43,856 595,794

Intrinsic Value Market Value

Enterprise Value 547,751 Market Cap 500,000
Plus: Cash 300,000 Plus: Debt 130,000
Less: Debt 130,000 Less: Cash 300,000
Equity Value 717,751 Enterprise Value 330,000

Equity Value/Share 35.89 Equity Value/Share 25.00

Instructions
Step 1: Get EBIT and D&A from the income statement This file is for ed
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
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different file format will permanently break the
chart.

Terminal Value
Perpetural Growth 645,311
EV/EBITDA 546,278
Average 595,794

Rate of Return
Target Price Upside 44%
 Internal Rate of Return (IRR) 24%

Market Value vs Intrinsic Value

Market Value 25.00
Upside 10.89
Intrinsic Value 35.89

This file is for educational purposes only. E&OE

Corporate Finance Institute®

https://corporatefinanceinstitute.com/