DCF Model with Company Valuation
This Discounted Cash Flow Model with company valuation made by Oak Business Consultant is a two in one model which can be used in several ways. It also calculates the expected Share Price of a company.
How to use this Model:
All the peach-coloured cells are for inputs which need to be filled by you.
You can use the scroll bars to set your desired values where applicable.
This model can be used for the following calculations.
The present value of all the future fixed cash inflows for a certain time.
Where “t” is the number of years when cash will be received, and “r” is the discount rate also known as the cost of capital or interest rate applicable.
Therefore, if a person will receive $1000 for 10 years each year, by the end of ten years he will have $10,000.
But, the present value of that $10,000 is only $6,145 today discounted at 10% per annum interest rate.
This model tells you the present value of future cash in-flows for a certain period even if the cash flows are not consistent.
You need to put in yearly cash flows manually in the Input cells. The rest is the same as above.
Now, the model will tell you the present value of the future cash flow if the discount rate is also changing each year.
You need to put in the cash inflows and the discount rate for each specific year. Calculations will be made based on your data.
This model can also calculate the Present value of Cash flows of a company based on the Free Cash flows.
- You need to input cash inflow for year 1 i.e. the year 2020 for now but you can change that.
- Input all the expected growth rates. The model is dynamic and all the cells are linked to the input values.
- Input the tax rate, the amount of depreciation in year 1 and the rate of change in depreciation.
- Input the Working Capital Requirement of the company and the rate of change.
- Lastly, input the Capital Expenditure amount of the year 2020 and the rate of change in Capital Expenditure.
This part of the model will provide you with the present value of all cash flows until the year 2025.
Now if you provide some more information to the model. It calculates the Total Value of the company, along with the expected Share Price of the Organisation.
This model calculates the Share Price of a company’s shares based on two different methods.
- Growth in Perpetuity approach
- EBITDA Multiple Approach
Both of these are highly technical and very reliable approaches to finding a True and Fair value of shares being traded in the Stock market based on factual data of the company. Just input all the values required by the model. The values can be found easily on a balance sheet of the company.
The long term growth rate is an expected value by which the company will continue to grow after the year 2025. The EBITDA Multiple is also an expected value based on information available in the stock market. As a result, this will show you the expected fair value of the shares in the stock market of the company.
The actual price of the shares in the stock market may be different for several different economic factors. But, it is usually believed that the value of the shares in the stock market will eventually reflect this expected fair value when all the other factors become constant.
So, this calculated value is a good indication of the Per Share Price and Total Company’s Value.
Who Should Use?
Anyone with even ZERO knowledge of accounting, who wish to find the discounted value of the future cash flows and to calculate the total value of a company without using any one’s help can easily use this DCF model with Company Valuation.
The model is self-explanatory and the comment boxes explain how to fill in the required information.
You can delete or hide the comment boxes. Just simply right-click the cell which contains the comment and click “show/hide Comment” or “delete comment”.
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An Oak Business Consultants Provides Various Financial Model Templates; each industry model has unique revenue and input assumptions based on the industry nature and operation requirement. We have dug into almost every industry and have built 100+ models for every specific niche market.
For Example; a website has a general base model for e-commerce business and several other businesses that come under the E-commerce industry like Online Clothing Business and Online Toy Store, etc.
The pre-built financial models are made to help an entrepreneur, by giving them financial projections for their business. These models provide a prebuilt detail and structure to those who have a similar business revenue model as already available on the website. However, if you have a business model which is unique and have several different revenue streams. Therefore, you need Buy Customization Plans financial model services where you can avail of modeling services as per your business nature and operation requirements.
All pre-built models are Comprehensive and dynamic, designed by expert professionals by considering all the elements any business requires while computing the financial feasibility of the business. The financial model template will provide the assistance to compute the startup summary, detailed monthly and yearly profit and loss statement, balance sheet, cash flow Analysis, and Break-Even Output summary. The template also has project evaluation reports and diagnostic sheets which will allow you to determine the company’s performance in a specified period of time. Moreover, a visual representation of these reports is compiled on a dashboard to make a convenient report overview for the user.
The models will be in Microsoft Excel file format, and they are immediately available for download after making the purchase. A model can redownload at any time in the future from the same account.
The optimal way to use the model is to familiarize yourself first with how the model is linked and structured. There are already detailed instructions on howdetailed how to use the description mentioned under each product profile.
Moreover, then start with the input sheet with the most important assumptions, and start filling in the inputs as per your business information which is clearly labeled and formatted in a pink color cell. For Example; If your region tax rate is 25% so fill it under the tax field, which is already highlighted so then a model will automatically compute all related calculations. The same procedure will go with all operating and variable cost sections, which are mentioned in the model.
Next comes the revenue-related input; then go through the inputs around growth rate, churn rate, prices, and cost of sales, etc. These inputs will be changed from industry to industry; however, the basic structure is the same.
So far, you’ll get basic forecast reports, and now it comes down to looking at the Summary and Key Reports sheet(s) to see if the estimation makes logic: net income, gross margin and net cash flow, etc. Refine and iterates the inputs until you get a final result that makes sense for your business and your industry.
The Financial models are in xls. File format. We would recommend to use Excel or Google Sheets to develop and edit financial models. In practice, We use Excel to build and edit models and Google Sheets to share with clients. Because Excel is usually a faster software for building and designing with so many features, however, Google Sheets can make it convenient for sharing models with the user.
Our models can be used in both Excel and Google Sheets interchangeably; simply upload the Microsoft Excel model template into Google Sheets, and everything will be ready to go.
Undoubtedly Yes! All formulas’ cells and sheets are completely editable and open. Therefore, you can edit anything as per your requirement. But, you must need to consider the cell linkage first before making any change.
How to Edit the Mode?
All peach Areas are your INPUT CELLS. Please fill the PEACH AREA as per your Business situation. All WHITE and COLORED CELLS are CALCULATED and LINKED CELLS.
The Model is easy to use, dynamic and Transparent. We did not use complex formulas to build the Pre-built Financial Model or Financial Template.
Yes, We provide Half an Hour of free consultancy. We help you to explain
- The flow of Pre- Built Financial Model
- Explain Financial Terminology
- Explain How the Pre-built Financial Model work.
You can fix a meeting time with our Expert Financial Consultant and avail yourself of this opportunity to have one to one call with him/her.
By selecting the right model, analyze your industry first and decide under which category you’re business is falling in.
For More Detail, visit our Financial Model Template Shop