DCF Tools

A wide variety of valuation approaches are employed in practice to estimate the value of a company or transaction. A DCF valuation converts the forecasted future cash flows of a business into an estimate of the company value or some part of the business, by discounting it at the appropriate cost of capital based on the risk.

Download the following models:

- The Adjusted Present Value model estimates the company value as if it was financed totally by equity and than adjust it for side effects such the tax shield provided by debt.
- The Enterprise Valuation model involves first estimating the total value of a company by discounting its net free cash inflows at the weighted average cost of capital (after taxes), and then subtracting the market value of any company debt to arrive at the value of its equity.
- An Exit Multiple Estimation model. The calculation of company value is usually split up into the value expected to be generated during the estimation or planning period, and its exit or horizon value - the amount it will be worth at the horizon. This model estimates the horizon or exit value.
- The Leveraged Buyout Equity Valuation model model uses the equity method to estimate the debt capacity and equity value of a leveraged buyout. The equity method estimates the equity value by discounting the net free cash flows to equity at the (average) required return or cost of equity.