Valuedesk.us
Public company

Discounted cash flow

Every line of the free cash flow build is visible and every driver is editable per year. The terminal value is computed both ways, and each method shows what the other one implies, so you can see when the exit multiple and the growth assumption disagree.

as entered
Assumptionsbase
Load from SEC filings
Base year
last fiscal year
Of base revenue. Sets the starting point for year 1's change in NWC.
Discounting
discount rate
Discounts at t minus 0.5, treating cash as arriving through the year.
Terminal value
drives value
check
Bridge to equity
Value per share
$24.31
Enterprise value
$2,781M
Equity value
$2,431M
Forecastdrivers are editable
 Y1Y2Y3Y4Y5
Drivers
Revenue growth%
EBIT margin%
D&A%
Capex%
Net working capital%
Free cash flow build
Revenue$1,080M$1,156M$1,225M$1,286M$1,338M
Revenue growth8.00%7.00%6.00%5.00%4.00%
EBIT$194M$208M$233M$244M$268M
EBIT margin18.00%18.00%19.00%19.00%20.00%
Less: taxes on EBIT($41M)($44M)($49M)($51M)($56M)
NOPAT$154M$164M$184M$193M$211M
Plus: D&A$54M$58M$61M$64M$67M
Less: capex($65M)($69M)($67M)($71M)($67M)
Less: change in NWC($8M)($8M)($7M)($6M)($5M)
Unlevered free cash flow$135M$145M$171M$181M$206M
Discount periodmid-year0.5001.5002.5003.5004.500
Discount factor0.95780.87870.80620.73960.6785
Present value of FCF$129M$128M$138M$134M$140M
Valuation bridgeevery line is overridable
PV of forecast FCF5y$668M
Terminal valuegordon growth$3,252M
PV of terminal value$2,113M
Terminal value share of EV75.99%
Enterprise value$2,781M
Less: total debt($500M)
Plus: cash and equivalents$150M
Less: minority interest$0M
Equity value$2,431M
Diluted sharesmillions100
Value per share$24.31
Implied exit multiplecross-check9.72x
Implied perpetuity growthcross-check2.67%
Sensitivitywacc × terminal growth
WACC \ Terminal growth1.50%2.00%2.50%3.00%3.50%
8.00%$25.25$27.19$29.49$32.25$35.61
8.50%$23.14$24.78$26.68$28.94$31.64
9.00%$21.32$22.71$24.31$26.18$28.40
9.50%$19.72$20.91$22.28$23.86$25.70
10.00%$18.31$19.35$20.52$21.86$23.41

Blank cells are combinations where terminal growth meets or exceeds the discount rate, which has no finite value.