Excel from the DCF Lesson


This article shows the spreadsheet I made to illustrate the DCF lesson on YouTube. The image that comes next before the table, has nothing to do with it but it came up on the “content enriching” function, and it looked interesting, so I thought I’d share it with you at the same time.

For those wishing to see the DCF lesson, here it is:

Obstacles to the free flow of information online.

Countries impeding the free flow of information on-line

Cost of Capital
0.15
Time 0 1 2 3 4 5 6
Cash At Start 100,000
EBITDA (100,000) 20,000 200,000 300,000 350,000 350,000
CAPEX (50,000) (30,000)
FCF 100,000 (150,000) 20,000 200,000 270,000 350,000 350,000
Annuity Value 2,333,333
Discount Factor 1.0000 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323
DCF 100,000 (130,435) 15,123 131,503 154,373 174,012 1,160,079
Value of the Business 1,604,656

About David J. James

53 year old accountant who loves languages, literature, history, religion, politics, internet, vlogging and blogging and lively written discussion. Conservative Christian, married to an angel, we have three kids, and live in Warsaw, Poland. I can help you with company set-up, bookkeeping, payroll, tax, audit and due diligence all over Poland and the region.

Posted on 17/09/2010, in Accounting, Business & Finance, Answers to your questions and tagged , , , , , , , . Bookmark the permalink. 2 Comments.

  1. Tom McDonald

    1. Can I get a copy of the Spreadsheet that you used in calculating the DCF
    2.. You mentioned the “power of” in the calculation the Discount factor – Not sure how to do this in Excel
    3. You mentioned the Scapiro calc, which you called “GS”. How do you do this.
    I think it would make more sense if I could look at the spreadsheet, so I could see your formula. Can you please email it to me or explain where I can go to download it.
    Thanks.
    Tom McDonald (Australia)
    tmcd7080@bigpond.net.au

    Like

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