DCF Business Valuation

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					                         VALUATION BASED (ON DCF MODEL)

                                                   GUIDELINES
This template uses a DCF Model to value a business. DCF is used as tool to compare the valuation of the business with
current market value and manifests the attractiveness of the business. DCF uses future free cash flows and discounts it with
Weighted Average Cost of Capital score to arrive at the present value of the business. The DCF for an investment is
calculated by estimating the cash you will have to pay out and the cash you think you will receive back. The times that you
expect to receive the payments must also be estimated. Each cash transaction must then be discounted by the opportunity cost
of capital over the time between now and when you will pay or receive the cash.


Assumptions               Assumptions on which the valuation is done
Forecasted P&L            Forecasted P&L
Balance Sheet             Balance Sheet
WACC                      Weighted Average Cost of Capital
Valuation                 Free cash flow calculation

Note: cells marked in yellow require your input.




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                                                              ASSUMPTIONS

Note: cells marked in yellow require your input.
Revenue Growth Rate Assumptions                                                          Sustainable
                                                   2012 E 2013 E 2014 E 2015 E 2016 E   2017 Onwards    Phase   Types of Phases
             1   Product 1                               0%     0%     0%     0%     0%            0%           Introduction
             2   Product 2                               0%     0%     0%     0%     0%            0%           Growth
             3   Product 3                               0%     0%     0%     0%     0%            0%           Mature
             4   Product 4                               0%     0%     0%     0%     0%            0%           Decline
             5   Product 5                               0%     0%     0%     0%     0%            0%

WC Change as a Percentage of Revenue (%)               0%      0%      0%     0%      0%          0%
EBITDA as a % of Sales                                 0%      0%      0%     0%      0%          0%
Tax Rate (%)                                           0%      0%      0%     0%      0%          0%
Capital Expenditure (%)                                0%      0%      0%     0%      0%          0%
Depreciation (%)                                       0%      0%      0%     0%      0%          0%
Terminal Growth Rate                                   0%

Assumptions for Free Cash Flow Valuation:
          1 xxxxx
          2 xxxxx
          3 xxxxx
          4 xxxxx
          5 xxxxx
          6 xxxxx
          7 xxxxx




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                                                                   FORECASTED P&L

Note: cells marked in yellow require your input.

                                                           2009     2010   2011   2012 E   2013 E   2014 E   2015 E   2016 E   2017 and Onwards
Operating Revenues as Adjusted
Product 1                                                   100      200    300     300      300      300      300      300                300
Product 2                                                   250      350    450     450      450      450      450      450                450
Product 3                                                     -        -      -       -        -        -        -        -                  -
Product 4                                                     -        -      -       -        -        -        -        -                  -
Product 5                                                     -        -      -       -        -        -        -        -                  -
Total Operating Revenues                                    350      550    750     750      750      750      750      750                750

Total Operating Expenses                                     75       80     90

Operating Income (Loss)                                     275      470    660

Other Income (Expense)
Interest Expense                                               -       -      -
Equity in Net Income of Affiliates                             
				
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posted:12/21/2011
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Description: This form provides a spreadsheet that uses a discounted cash flow (DCF) model to value a business. The DCF model utilizes future free cash flows and then applies a discount rate, based on the weighted average cost of capital (WACC), to calculate the present value of a business. There are five worksheets which the user must complete in order to arrive at a proper valuation: assumptions, forecasted P&L, balance sheet, WACC, and valuation. This DCF Business Valuation can be used to calculate a present value of the future cash flows that will be generated by a business or investment opportunity.