Description

Discounted Cash Flow Calculator

Oak Business Consultants designed the DCF Cash Flows Valuation calculator to help investors estimate the fair value of their investments. Moreover, the method relies on the projected FCF over the next 5 years, discounted by the risk factor. Optimize your financial strategies with our advanced DCF Valuation Calculator, performing detailed discounted cash flow analysis and modeling the valuation of future cash flows with precision. Equipped to calculate the rate of return and factor in the terminal growth rate, our DCF Valuation Calculator enables you to precisely evaluate the long-term growth prospects and profitability of projects.

Our Discounted Cash Flow Calculator is an essential tool for accurate business valuation, using the Net Present Value (NPV) method to consider the time value of money and ensure precise investment assessments. This tool meticulously calculates the Weighted Average Cost of Capital (WACC), integrating the average cost of capital to provide a comprehensive financial foundation for your DCF analysis.

Two different methods of calculating Net Present Value, based on the discounted cash flows, are included in this tool:

1. DCF Valuation by Long-Term Growth Method
2. DCF Valuation by Multiples Method

These methods use the free cash flows to equity projected for the startup/ project. Also, use the survival rate based on the time period of the estimated and the sector’s survival rate.

DCF Valuation (LTG Method): 

You can use this DCF Valuation template for startup projects expected to continue indefinitely. Furthermore, the terminal value is evaluated by multiplying last year’s forecasted free cash flow with the survival rate. Furthermore, it multiplies last year’s estimated long-term growth rate and discount rate.

DCF Valuation by Multiples Method:

Startup projects or other business models that anticipate halting operations in the future can use this method to determine the terminal value for NPV calculation after discontinuing operations. Thus, calculate the terminal value by multiplying last year’s projected EBITDA with the industry’s survival rate and the EBITDA multiple.

Benefits of the Discounted Cash Flow Calculator

1. The tool helps you understand the methods and their use in a different framework.
2. You just have to change the input, and you will get the output automatically.  
3. Also, the tool contains different methods in a single excel document. In addition, you do not have to buy different models for different valuation methods.

Walk-Through Video of Discounted Cash Flow Calculator

The following video will give you an overview of the different components and will help you understand how it works.