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DCF Analysis Template
DCF Analysis Template
JOSHUA ROSENBAUM
JOSHUA PEARL
ValueCo Corporation
Discounted Cash Flow Analysis
($ in millions, fiscal year ending December 31) Operating Scenario Base
Operating Scenario 1
Mid-Year Convention Y Historical Period CAGR Projection Period CAGR
2005 2006 2007 ('05 - '07) 2008 2009 2010 2011 2012 2013 ('08 - '13)
Sales - - - - - - - - - - -
% growth NA - - - - - - - -
COGS - - - - - - - - -
Gross Profit - - - - - - - - - - -
% margin - - - - - - - - -
SG&A - - - - - - - - -
EBITDA - - - - - - - - - - -
% margin - - - - - - - - -
Depreciation & Amortization - - - - - - - - -
EBIT - - - - - - - - - - -
% margin - - - - - - - - -
Taxes - - - - - - - - -
EBIAT - - - - - - - - - - -
Plus: Depreciation & Amortization - - - - - - - - -
Less: Capital Expenditures - - - - - - - - -
Less: Increase in Net Working Capital - - - - -
Unlevered Free Cash Flow - - - - -
WACC -%
Discount Period 0.5 1.5 2.5 3.5 4.5
Discount Factor 1.00 1.00 1.00 1.00 1.00
Present Value of Free Cash Flow - - - - -
Enterprise Value Implied Equity Value and Share Price Implied Perpetuity Growth Rate
Cumulative Present Value of FCF - Enterprise Value - Terminal Year Free Cash Flow (2013E) -
Less: Total Debt - WACC -
Terminal Value Less: Preferred Securities - Terminal Value -
Terminal Year EBITDA (2013E) - Less: Noncontrolling Interest -
Exit Multiple -x Plus: Cash and Cash Equivalents - Implied Perpetuity Growth Rate -%
Terminal Value -
Discount Factor 1.00 Implied Equity Value - Implied EV/EBITDA
Present Value of Terminal Value - Enterprise Value -
% of Enterprise Value -% Implied Share Price - LTM 9/30/2008 EBITDA -
WACC
-0.5% 0 0 0 0 0 -0.5% -% -% -% -% -%
0.0% 0 0 $0 0 0 0.0% -% -% -% -% -%
0.5% 0 0 0 0 0 0.5% -% -% -% -% -%
1.0% 0 0 0 0 0 1.0% -% -% -% -% -%
ValueCo Corporation
Sensitivity Analysis
($ in millions)
WACC
-0.5% 0 0 0 0 0 -0.5% 0 0 0 0 0
0.0% 0 0 $0 0 0 0.0% 0 0 $0 0 0
0.5% 0 0 0 0 0 0.5% 0 0 0 0 0
1.0% 0 0 0 0 0 1.0% 0 0 0 0 0
WACC
-0.5% NA NA NA NA NA -0.5% -% -% -% -% -%
0.0% NA NA NA NA NA 0.0% -% -% -% -% -%
0.5% NA NA NA NA NA 0.5% -% -% -% -% -%
1.0% NA NA NA NA NA 1.0% -% -% -% -% -%
WACC
-0.5% -% -% -% -% -% -0.5% -x -x -x -x -x
0.0% -% -% -% -% -% 0.0% -x -x -x -x -x
0.5% -% -% -% -% -% 0.5% -x -x -x -x -x
1.0% -% -% -% -% -% 1.0% -x -x -x -x -x
ValueCo Corporation
Working Capital Projections
($ in millions)
Current Assets
Accounts Receivable - - - - - - - - -
Inventories - - - - - - - - -
Prepaid Expenses and Other - - - - - - - - -
Total Current Assets - - - - - - - - -
Current Liabilities
Accounts Payable - - - - - - - - -
Accrued Liabilities - - - - - - - - -
Other Current Liabilities - - - - - - - - -
Total Current Liabilities - - - - - - - - -
Assumptions
Days Sales Outstanding - - - - - - - - -
Days Inventory Held - - - - - - - - -
Prepaids and Other CA (% of sales) -% -% -% -% -% -% -% -% -%
Capitalization
Debt-to-Total
-20.0% 0.2% 0.1% 0.0% -0.1% -0.2%
-10.0% 0.1% 0.1% 0.0% -0.1% -0.1%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
10.0% -0.1% -0.1% 0.0% 0.1% 0.1%
20.0% -0.2% -0.1% 0.0% 0.1% 0.2%
Projection Period
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
SG&A (% sales) -% -% -% -% -% - - - - -
Base 1 -% -% -% -% -% - - - - -
Management 2 -% -% -% -% -% - - - - -
Upside 3 -% -% -% -% -% - - - - -
Downside 1 4 -% -% -% -% -% - - - - -
Downside 2 5 -% -% -% -% -% - - - - -
Projection Period
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Current Assets
Days Sales Outstanding (DSO) - - - - - - - - - -
Base 1 - - - - - - - - - -
Management 2 - - - - - - - - - -
Upside 3 - - - - - - - - - -
Downside 1 4 - - - - - - - - - -
Downside 2 5 - - - - - - - - - -
Current Liabilities
Days Payable Outstanding (DPO) - - - - - - - - - -
Base 1 - - - - - - - - - -
Management 2 - - - - - - - - - -
Upside 3 - - - - - - - - - -
Downside 1 4 - - - - - - - - - -
Downside 2 5 - - - - - - - - - -
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ISBN-13 978-0-470-44220-3
Printed in the United States of America
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