DESCRIPTION
The DCF Cash Flows Valuation calculator has been designed by Oak Business Consultants to help investors estimate the fair value of their investments. Moreover, the method is based on the projected FCF over the next 5 years, discounted by the risk factor
Two different methods of calculating Net Present Value, based on the discounted cash flows, are included in this tool:
DCF Valuation by Long-Term Growth Method
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):
This DCF Valuation template can be used for startup projects that are expected to continue forever. 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 are expected to halt operations in the future. Furthermore, it can use this method to determine the terminal value for NPV calculation after the operations will be discontinued. Thus, the terminal value is calculated by multiplying last year's projected EBITDA with the industry's survival rate and the EBITDA multiple.
Benefits of the DCF Valuation Calculator
The tool helps you understand the methods and their use in a different framework.
You just have to change the input, and you will get the output automatically.
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.
Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.
Source: Best Practices in Valuation Model Example, Valuation Excel: DCF Valuation Calculator Excel (XLSX) Spreadsheet, Oak Business Consultant
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