Sample DCF Valuation Template

Note: Items in RED are calculated automatically

(In $ Billions)
Base year 1 2
Assumptions:
Revenue growth rate 5.0% 6.0%
EBIT (Operating) margin 8.0% 8.0% 8.0%
Tax rate 35.0% 35.0% 35.0%
Depreciation as % of Sales 3.0% 3.0% 3.0%
CAPEX as % of sales 4.0% 4.0% 4.0%
Working Capital ($) 10.0 10.5 11.1
WC as % of Sales 1.0% 1.0% 1.0%
Cost of capital 6.3% 6.3%

Free cash flow to firm ($ millions):

Revenues 1,000 1,050 1,113
EBIT 80 84 89
EBIT(1-tax) 52 55 58
Add: Depreciation 31.5 33.4
Less: CAPEX 42 45
Less: Increase in Working Capital 1 1
FCFF 44 46
Terminal value

Present value:
Cumulative discount factor 0.9409 0.8852
PV of FCFF and TV 41 41

Enterprise value of firm 1,520.0

- Debt 600.0
+ Excess Cash 0.0
+Value of other holdings not included in EV 0.0
Value of equity 920.0
- Misc non-interest paying liabilities not included in Debt 0.0
Value of common equity 920.0
Number of shares outstanding 16.00
Estimated value /share $ 57.50

Market Price today $ 50.00

WACC Equity Debt Preferred

Market values $ 800.0 $ 600.0 $ -
Weights in WACC 57.1% 42.9% 0.0%
Cost of Component (after-tax cost for debt) 8.0% 4.0% 6.0%
 Terminal
3 4 5 year

7.0% 7.0% 7.0% 3.0%

8.0% 8.0% 8.0% 8.0%
35.0% 35.0% 35.0% 35.0%
3.0% 3.0% 3.0% 3.0%
4.0% 4.0% 4.0% 4.0%
11.9 12.7 13.6 14.0
1.0% 1.0% 1.0% 1.0%
6.3% 6.3% 6.3% 6.3%

1,191 1,274 1,363 1,404

95 102 109 112
62 66 71 73
35.7 38.2 40.9 42.1
48 51 55 56
1 1 1 0
49 53 56 59
1,783

0.8329 0.7836 0.7373 0.7373

41 41 42 1,314

Capital
$ 1,400.0
100.0%
6.29%