DCF – Company Valuation Model with Excel Templates

Learn the basic terminology of the dcf model. Prepare to use an Excel template and explore time value of money, free cash flow, and the weighted average cost of capital.

Learn how a discounted cash flow model values assets by forecasting five-year free cash flow, applying the weighted average cost of capital, and deriving enterprise and equity value.

Learn how time value of money drives discounting in DCF, forecasting five-year cash flows, and converting them to present value using a simple example of $1 million now versus later.

Explore free cash flow, cash available to debt and equity holders, and formula: EBIT times one minus tax rate plus depreciation and amortization, minus capex and non-cash working capital changes.

Learn the weighted average cost of capital (WACC) as the discount rate for a company, and how debt and equity shape its cost of capital, with a $100,000 startup example.

Learn to compute a company’s wacc using a $100,000 market value, 30% debt, 70% equity, 4% debt cost, 10% equity cost, and 25% tax, yielding 7.9%.

Use discount rate and WACC in a DCF to judge if a project adds wealth, calculating present value and per-share value for investment decisions.

Explore terminal value concepts in DCF, using perpetuity growth and exit multiple methods. See how final year cash flow, growth assumptions, and EBITDA multiples drive valuation in Excel.

Analyze the breakeven point and breakeven analysis using a $100,000 investment for an application, including fixed and variable costs and a $4 unit price to reach 50,000 units.

Explore how to use historical data and future assumptions to build a discounted cash flow valuation from the income statement, balance sheet, and cash flow statement, including depreciation and capex.

Develop a four- to five-year income statement for a subscription-based mobile app, detailing downloads, subscription conversions at $20, publishing commissions, operating costs, taxes, depreciation and interest, and links to CapEx, balance sheet, and cash flow in a DCF model.

Calculate capex and depreciation for assets such as computers, software licenses, and servers, assigning useful lives and recording annual depreciation on the income statement to support the balance sheet.

Explore how a balance sheet captures historical data—cash, accounts receivable, fixed assets and depreciation, deferred revenue, liabilities, and equity—and how a balance check confirms assets equal liabilities plus equity.

Develop and balance the cash flow statement by projecting five years, starting from net income and splitting into operating, investing, and financing activities, with depreciation, CapEx, and free cash flow.

Build a dcf model from income statement, balance sheet, and cash flow; calculate terminal value with multiples and perpetual growth; equity value via discounted cash flow using Excel body panels.

Learn to compute unlevered free cash flow from three financial statements, adjusting for taxes, depreciation and amortization, net working capital changes, and capex, for a five-year period and terminal value.

Apply the ebitda multiple method to estimate a five-year cash flow value and determine terminal value using a chosen industry multiple, illustrating with a 20x software industry example.

Explore the perpetual growth method for dcf valuation, detailing terminal growth rate, discount rate, inflation considerations, and how inputs influence results.

Value equity using a discounted cash flow with levered free cash flow and terminal value, applying a locked discount rate, then adjust enterprise value for cash and debt.

Design a sensitivity analysis for the discounted cash flow results by adjusting the discount rate and multiples, using a data table to display enterprise and equity value across scenarios.

Learn to use data from income statement, balance sheet, and cash flow statement to design an Excel DCF template for valuing a company, and grasp five elements of investor meetings.

Open an investor meeting with a concise self-introduction that highlights personal strengths. Highlight that investors invest in character, so sell yourself and your company to spark a decisive response.

Determine how much funding you want from investors and the equity you’re willing to give. Illustrate with an example, such as $50,000 for 20% equity, implying a $250,000 valuation.

Identify the problem your product solves, justify buyer readiness, articulate competitive advantage, market size, and target audience, and demonstrate a working prototype to engage investors.

Prepare detailed fund-usage calculations before your investor meeting to show how the money will move your product to the next level by expanding, reaching new markets, and adding features.

Present a realistic return of investment by detailing your revenue model and growth rate, providing ballpark figures for when and how investors get their money back with profits.

Master the basics of DCF terminology, build a three-statement model with capex and depreciation schedules, and prepare for investor meetings with a practical valuation workflow.