Intrinsic Value Excel Template

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Victor Jain has identified a small-cap value stock and has arrived at following undiscounted
cash flows and he is willing to determine to find out the intrinsic value of the stock.

Discount Rate 9%

Year Undiscounted Cash Flow Discounted Cash Flow

1 10,000 9,174
2 10,130 8,526
3 9,245 7,139
4 9,365 6,634
5 14,047 9,130
6 13,552 8,081
7 7,226 3,953
8 7,320 3,674
9 7,415 3,414
10 7,504 3,170
Intrinsic Value 62,894
Let us take a simple example of Amazon Inc. As per the consensus data available on Bloomberg, the following
are the undiscounted cash flows current as well as forecast, you are required to calculate the intrinsic
value of amazon Inc. You can assume a discount rate of 9.12% and a risk-free rate of 2.3%.

Discount Rate 9.12%

Risk-Free Rate / Growth Rate 2.3%

5-year Cash Flow Forecast Levered FCF (USD, Millions) Present Value of Cash Flows
2017 12,691.98 11,631.21
2018 18,180.98 15,268.93
2019 24,206.72 18,630.43
2020 28,356.63 20,000.33
2021 31,770.80 20,535.55
Intrinsic Value 86,066.45

Terminal Value is calculated using the formula given below

Terminal Value = [FCF2021 * ( 1 + Growth Rate )] /[Discount Rate – Growth Rate]

Terminal Value 476,562

Discounted Terminal Value is calculated as

Discounted Terminal Value 308,033.27

Total Intrinsic Value of Equity is calculated using the formula given below
Total Intrinsic Value of Equity = Terminal Value + Discounted Terminal Value

Total Intrinsic Value of Equity 784,595.27

berg, the following
Let us take an example of Facebook. As per the consensus data available on Bloomberg, the following
are the undiscounted cash flows current as well as forecast, you are required to calculate the intrinsic
value of facebook Inc. You can assume a discount rate of 10.72% and a risk-free rate of 2.5%.

Discount Rate 10.72%

Risk-Free Rate / Growth Rate 2.50%

5-year Cash Flow Forecast Levered FCF (USD, Millions) Present Value of Cash Flows
2017 12,859.33 11,614.28
2018 16,381.39 13,362.83
2019 19,441.87 14,323.85
2020 23,874.86 15,886.80
2021 27,740.33 16,671.75
Intrinsic Value 71,859.52

Terminal Value is calculated using the formula given below

Terminal Value =[ FCF2021 * ( 1 + Growth Rate )] /[Discount Rate – Growth Rate]

Terminal Value 345,910.44

Discounted Terminal Value is calculated as

Discounted Terminal Value 207,889.85

Total Intrinsic Value of Equity is calculated using the formula given below
Total Intrinsic Value of Equity = Terminal Value + Discounted Terminal Value

Total Intrinsic Value of Equity 553,800.29

the following
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