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DCF Model: Strictly Confidential
DCF Model: Strictly Confidential
Table of Contents
DCF Model
Notes
This Excel model is for educational purposes only and should not be used for any other reason.
All content is Copyright material of CFI Education Inc.
https://corporatefinanceinstitute.com/
DCF Model
Assumptions
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Tax Rate 25% Cash Flow
Discount Rate 12% $50,000 $47,008 Editing this shape or saving this workbook into a
$41,501
$43,510 different file format will permanently break the chart.
Perpetural Growth Rate 3% $45,000
$40,000 $37,715
EV/EBITDA Mulltiple 7.0x
$35,000
Transaction Date 12/31/2017 $30,000
Fiscal Year End 6/30/2018 $25,000
$20,000 $17,747
Current Price 25.00
$15,000
Shares Outstanding 20,000 $10,000
Debt 30,000 $5,000
$0
Cash 239,550 2018 2019 2020 2021 2022
Capex 15,000
Discounted Cash Flow Entry 2018 2019 2020 2021 2022 Exit Terminal Value
Date 12/31/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2022 Perpetural Growth
Time Periods 0 1 2 3 4 EV/EBITDA
Year Fraction 0.50 1.00 1.00 1.00 1.00 Average
EBIT 47,814 51,095 55,861 58,693 63,039
Less: Cash Taxes 11,954 12,774 13,965 14,673 15,760
Plus: D&A 15,008 15,005 15,003 15,002 15,001
Less: Capex 15,000 15,000 15,000 15,000 15,000
Less: Changes in NWC 375 611 398 511 272
Unlevered FCF 35,494 37,715 41,501 43,510 47,008
(Entry)/Exit (290,450) 542,129
Transaction CF - 17,747 37,715 41,501 43,510 47,008 542,129
Transaction CF (290,450) 17,747 37,715 41,501 43,510 47,008 542,129
537,981
546,278
542,129
35%
26%
vs Intrinsic Value
25.00
8.63
33.63
ucational purposes only. E&OE
CAPEX
Net fixed assets 1,000.00 1,080.00 1,166.40 1,259.71 1,360.49
Net operating working capital 800.00 864.00 933.12 1,007.77 1,088.39
Total operating working capital 1,800.00 1,944.00 2,099.52 2,267.48 2,448.88
Net CAPEX 130.00 80.00 86.40 93.31 100.78
Add: Depreciation 100.00 116.64 167.96 158.72 171.42
CAPEX 230.00 196.64 254.36 252.03 272.20
DEPRECIATION
100.00 116.64 167.96 158.72 171.42
NOWC
NOWC 150 64.00 69.12 74.65 80.62
TAX
Rate 113.52 124.94 119.86 156.07 187.85
Intrinsic Value
Sum of PVs of FCF 2013-2017 245.09
PV of HV 2017 1,783.69
Intrinsic Enterprise Value 2,028.78
Less: Debt 860
Add: Cash 0
Intrinsic Equity Value 1,168.78
Outstanding shares 50
Intrinsic Value per share 23.38
Growth Rates Forecasted Years
4,615.48 2013 2014
- Sales 10% 9%
185.14 Operating costs as % of sales 87% 87%
507.19 Net fix assets 8% 8%
NOWC 8% 8%
Depreciation as % of operating capital 6% 8%
Tax rate 40%
1,469.33 WACC 10%
1,175.46 Long run FCF growth 6%
2,644.79
108.84 2012
185.14 Sales 3,000.00
293.98 Operating costs 2616.2
Dep=Depreciation 100
EBIT 283.80
185.14 EBIT X (1-T) + DEP 170.30