Intrinsic Value Formula Excel Template

Prepared by Dheeraj Vaidya, CFA, FRM

dheeraj@wallstreetmojo.com

visit - www.wallstreetmojo.com
Let us take an example of a company XYZ Limited which is currently trading in the stock market at $40 per
share with 60 million shares outstanding. An analyst intends to predict the intrinsic value of the stock based
on the available market information. The prevailing required rate of return expected by the investors in the
market is 5%. On the other hand, the free cash flow of the company is expected to grow at 8%.

All amount in Millions CY19 (E)

Net Profit after Tax $200.00
Depreciation & Amortisation $15.00
Increase in Working Capital $20.00
Capital Expenditure $150.00
Debt Repayment on existing de $50.00
Fresh Debt raised $100.00
No. of Outstanding Shares 60
Required rate of return 5%
FCFE Growth Rtae 8%
FCFE CY19 (in millions) $95.00

Projected FCFE for CY23 CY20 CY21 CY22 CY23

$ 102.60 $ 110.81 $ 119.67 $ 129.25

Terminal Value $ 2,584.93

Intrinsic value For Company $ 2,504.34

Intrinsic Value per Share $ 41.74