DCF Business Valuation

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