Build a discounted cash flow valuation from operating assumptions, capital structure inputs, and projected free cash flow, then bring those figures back to a present-value estimate for a company or investment.
This workbook is designed for founders, analysts, investors, lenders, and finance teams that need a structured DCF calculation rather than an isolated present-value formula. Users enter cost-of-capital assumptions and five annual periods of operating and balance-sheet data; the model organizes unlevered free cash flow, terminal value, discounted cash flows, and a summarized valuation result.
Estimate enterprise value
Translate projected unlevered free cash flow and a continuing-value assumption into a present-value result for valuation discussions.
Structure the discount rate
Combine debt and equity funding assumptions, resource costs, tax rate, and risk inputs into a weighted average cost of capital (WACC).
Test key assumptions
Review how the valuation responds when growth, financing mix, capital costs, or operating cash-flow drivers are revised.
What does the valuation analysis help you examine?
A DCF is useful when the decision depends on expected cash generation rather than accounting profit alone. The workbook connects the operating forecast to the discount rate so the valuation can be traced back to the assumptions that drive it.
Cost of capital: organize the risk-free rate, inflation premium, risk premium, debt and equity shares, financing costs, and tax rate used to calculate WACC.
Five-year free cash flow: project operating income, tax expense, depreciation, capital expenditures, inventory, liabilities, and changes in working capital across five annual periods.
Unlevered free cash flow: move from tax-affected operating profit to cash flow available before financing decisions.
Terminal value: apply an expected annual growth assumption after the explicit forecast period to represent value beyond year five.
Present value and valuation summary: discount forecast cash flows and terminal value to show the resulting net present value and a valuation multiple output.
What is inside the workbook?
The visible model is arranged as one connected valuation view. Yellow cells identify the assumptions and operating figures to be entered, while calculated rows summarize WACC, unlevered free cash flow, terminal value, present values, and the final valuation outputs. This layout keeps the major inputs and results in the same analytical flow.
Editable valuation assumptions
Enter risk and capital structure variables, including debt and equity proportions, their respective costs, and the applicable tax rate.
Operating cash-flow build
Populate annual operating income and the adjustments needed to derive unlevered free cash flow, including tax, non-cash expense, investment, and working-capital items.
Calculated valuation outputs
Review the weighted discount rate, annual discounted cash flows, terminal value, net present value based on year five, and the displayed valuation multiple.
The workbook view links WACC assumptions to a five-year unlevered free-cash-flow forecast and discounted valuation outputs.
Follow the valuation from assumptions to result
The upper section calculates WACC from risk, funding mix, financing cost, and tax inputs. The central schedule builds free cash flow for five financial years from operating income and cash-flow adjustments. The lower section applies the continuing-growth assumption, calculates terminal value, discounts the forecast amounts, and summarizes the resulting valuation. Because these elements are presented together, users can identify which assumption changed when the output moves.
How do you use the template?
Set the financing assumptions
Enter the risk inputs, debt and equity proportions, cost of debt, cost of equity, and tax rate used to calculate the weighted discount rate.
Build the operating forecast
Populate operating income and tax figures for each of the five years, then add depreciation, capital expenditure, inventory, liabilities, and working-capital changes where applicable.
Review unlevered cash flow
Check the calculated annual free cash flow before relying on the valuation. Confirm that investment and working-capital assumptions reflect the economics of the business or project.
Enter the continuing-growth assumption
Set the expected annual growth rate after year five and review the resulting terminal value alongside the explicit forecast cash flows.
Interpret the present value
Use the discounted cash-flow totals, year-five NPV result, and valuation multiple as decision inputs, then revise assumptions to examine a more conservative or more ambitious case.
Who is this template for?
The workbook fits users who already have, or can develop, a defensible operating forecast and need to convert it into a cash-flow-based valuation. Founders can use it when preparing for financing or ownership discussions; analysts and investors can examine the relationship between operating performance and intrinsic value; lenders and finance teams can evaluate whether projected cash generation supports the proposed capital structure. It is most useful when assumptions can be documented and reviewed rather than treated as fixed facts.
For a broader capital-structure review, pair the valuation with the Financial Debt Ratios Calculator. When debt funding is part of the plan, the Excel Loan Payment Template can help organize repayment assumptions before they are reflected in financing decisions. To translate a valuation range into funding terms and ownership discussions, use the Investor Negotiation Calculator.
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