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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/
Assumptions
Tax Rate 25% Cash Flow
Discount Rate 12% $50,000 $47,008
$43,510
Perpetural Growth Rate 3% $41,501
$40,000 $37,715
EV/EBITDA Mulltiple 7.0x $35,494
Discounted Cash Flow Entry 2021 2022 2023 2024 2025 Exit Terminal Value
Date 3/31/2020 3/31/2021 3/31/2022 3/31/2023 3/31/2024 3/31/2025 3/31/2025 Perpetural Growth
Time Periods 0 1 2 3 4 EV/EBITDA
Year Fraction 1.00 1.00 1.00 1.00 1.00 Average
EBIT 47,814 51,095 55,861 58,693 63,039
Less: 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 - 35,494 37,715 41,501 43,510 47,008 542,129
Transaction CF (290,450) 35,494 37,715 41,501 43,510 47,008 542,129
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
43%
24%
vs Intrinsic Value
25.00
10.85
35.85
ucational purposes only. E&OE