Discounted Cash Flow Valuation

Overview

The Discounted Cash Flow (DCF) Valuation model is the gold standard for determining intrinsic business value. This comprehensive Excel template helps you project future cash flows, calculate appropriate discount rates, and arrive at a defensible enterprise value.

What Is Included

• 5-year projection model with customizable growth assumptions
• WACC calculator with industry benchmarks
• Terminal value options (Gordon Growth and Exit Multiple methods)
• Sensitivity analysis tables showing value ranges across discount rates and growth assumptions
• Professional summary dashboard suitable for buyer presentations
• Detailed documentation explaining each input and formula

Who Should Use This

This tool is designed for:

• Business owners preparing for a sale in the next 12-24 months
• Those seeking to understand their business value before engaging advisors
• Owners who want to model the impact of improvements on value
• Anyone preparing for buyer discussions who needs professional-grade materials

How to Use

1. Input historical financials - Enter 3 years of revenue and EBITDA
2. Set growth assumptions - Define realistic growth rates for the projection period
3. Calculate WACC - Use the built-in calculator or input your own
4. Review scenarios - Examine base, bull, and bear case valuations
5. Present results - Use the summary dashboard for stakeholder discussions