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DCF valuation

Five years of free cash flow, a Gordon-growth terminal value, and the bridge from enterprise value to value per share.

Enterprise value ($mm)

$2,397

Equity value ($mm)

$1,947

Value per share ($)

$21.6

Terminal value / EV

74.1%

EV / year 1 EBITDA

8.4x

The download carries your own inputs, keeps every formula live and colours inputs blue exactly like the template. The share link reopens this page with your assumptions in place.

Click any highlighted cell to change an assumption. Black cells are formulas — you can retype those too, using Excel syntax such as =B5*(1+B6).

 ABCDEF
1DCF valuation model
2Yellow cells are inputs. Everything else is a formula — change an input and watch the value move.
3
4Assumptions ($mm unless noted)
5Revenue, year 0 ($mm)$1,200
6Revenue growth (annual)8.0%
7EBITDA margin22.0%
8D&A as % of revenue5.0%
9Tax rate25.0%
10Capex as % of revenue6.0%
11Working capital as % of revenue growth15.0%
12WACC9.0%
13Terminal growth2.0%
14Net debt ($mm)$450
15Shares outstanding (mm)90
16
17
18Free cash flow build
1920262027202820292030
20Revenue$1,296$1,400$1,512$1,633$1,763
21EBITDA$285$308$333$359$388
22D&A($65)($70)($76)($82)($88)
23EBIT$220$238$257$278$300
24Taxes($55)($59)($64)($69)($75)
25NOPAT$165$178$193$208$225
26Add back D&A$65$70$76$82$88
27Capex($78)($84)($91)($98)($106)
28Change in working capital($14)($16)($17)($18)($20)
29Free cash flow$138$149$161$174$188
30Discount factor0.90.80.80.70.6
31PV of FCF$126$125$124$123$122
32
33
34Valuation
35Sum of PV of forecast FCF$621
36Terminal value (Gordon growth)$2,733
37PV of terminal value$1,777
38Enterprise value$2,397
39Less: net debt($450)
40Equity value$1,947
41Value per share ($)$21.6
42Terminal value as % of EV74.1%
43Implied EV / year 1 EBITDA8.4x

Drills on this model

Answer out loud first, then change the cell and see how close you were.

  1. 1.Raise WACC from 9% to 11%. How much of the value per share disappears, and why is the terminal value hit hardest?
  2. 2.Set terminal growth to 3.5%. What share of enterprise value now sits in the terminal value — and would you defend it?
  3. 3.Cut the EBITDA margin by 2 points and raise growth by 2 points. Does the value go up or down? Say your answer before you type.
  4. 4.Make capex equal to D&A. What does that assumption say about the business you are valuing?