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.
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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
$41,501
$43,510 different file format will permanently break the chart.
Perpetural Growth Rate 3% $45,000
$40,000 $37,715
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 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 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
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 - 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/
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ermanently break the chart.

537,981
546,278
542,129

35%
26%

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

orporate Finance Institute®

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