Free finance template
Simple DCF
Five years of free cash flow, a terminal value and the enterprise value.
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The job it does
When you value a business or a product line, or check a valuation someone sent you. It comes with its own checks, so after you change it you can see at a glance that it still does the job.
What's inside
This is the template exactly as the Finance Lab opens it, read-only. Open it to run it, change it and export it.
- 1 sheet
- 20 formulas
- Exports to Excel, CSV and PDF
A discounted cash flow values a business as today's value of its future cash. Five explicit years, then a terminal value that assumes steady growth forever: FCF × (1 + g) ÷ (WACC − g).
Move WACC and terminal growth: when most of the value sits in the terminal value, small changes swing the answer a lot.
- No formula errors anywhere
- B18 is a formula, not a typed number
- B19 is a formula, not a typed number
| Number | Value |
|---|---|
| Enterprise value ($m) | 55.52 |
| Terminal share | 71.3% |
- WACC: 14% (from 0.08 to 0.25)
- Terminal growth: 4% (from 0 to 0.07)
- Revenue growth: 25% (from 0 to 0.6)
| Row | A | B | C | D | E | F | G |
|---|---|---|---|---|---|---|---|
| 1 | Mangrove delivery app: a simple DCF ($ millions) | ||||||
| 2 | Revenue this year | 48.00 | |||||
| 3 | Revenue growth | 25% | |||||
| 4 | EBITDA margin | 12% | |||||
| 5 | Capex (share of revenue) | 4% | |||||
| 6 | Tax rate | 25% | |||||
| 7 | Discount rate (WACC) | 14% | |||||
| 8 | Terminal growth | 4% | |||||
| 10 | Year | 1 | 2 | 3 | 4 | 5 | |
| 11 | Revenue | 60.00 (formula =B2*(1+$B$3)) | 75.00 (formula =C11*(1+$B$3)) | 93.75 (formula =D11*(1+$B$3)) | 117.19 (formula =E11*(1+$B$3)) | 146.48 (formula =F11*(1+$B$3)) | |
| 12 | Free cash flow | 3.00 (formula =C11*($B$4*(1-$B$6)-$B$5)) | 3.75 (formula =D11*($B$4*(1-$B$6)-$B$5)) | 4.69 (formula =E11*($B$4*(1-$B$6)-$B$5)) | 5.86 (formula =F11*($B$4*(1-$B$6)-$B$5)) | 7.32 (formula =G11*($B$4*(1-$B$6)-$B$5)) | |
| 13 | Present value | 2.63 (formula =C12/(1+$B$7)^C10) | 2.89 (formula =D12/(1+$B$7)^D10) | 3.16 (formula =E12/(1+$B$7)^E10) | 3.47 (formula =F12/(1+$B$7)^F10) | 3.80 (formula =G12/(1+$B$7)^G10) | |
| 15 | PV of 5 years | 15.95 (formula =SUM(C13:G13)) | |||||
| 16 | Terminal value | 76.17 (formula =IF(B7<=B8,"WACC must be above growth",G12*(1+B8)/(B7-B8))) | |||||
| 17 | PV of terminal value | 39.56 (formula =B16/(1+B7)^5) | |||||
| 18 | Enterprise value | 55.52 (formula =B15+B17) | |||||
| 19 | Terminal share of value | 71.3% (formula =B17/B18) |
The lesson behind it
Learn why it works, with a podcast and a quiz for each lesson.
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