Business Valuation and Company Valuation

Discounted Cash Flow Analysis – DCF Valuation

A DCF valuation is a method based on future cash flow discounted to present value. The analysis is widely used within investment banking and company valuation.

DCF model step by step guide for free

In this section we will provide a step by step DCF valuation guide where we describe and show how to calculate how much a business is worth based on future cash flows. First of all, download the excel spread sheet below to start the Discounted Cash Flow Analysis.

This is what we will achieve when the tutorial is finished

To start – Download our free DCF model template in Excel

Download this DCF model template so that you can calculate the value of a business. All input will be described in the below tutorial.

Are you ready?

Follow these ten steps to perform your own discounted cash flow valuation.

1. Enter historical financial information
2. Enter Historical Working Capital
3. Make Future Projections
4. Step 4 – Calculate Unlevered Cash Flow
5. Target Capital Structure
6. Determine WACC
7. Present Value of Free Cash Flow
8. Calculate Terminal Value
9. Enterprise Value
10. Sensitivity Analysis

Other Valuation methods