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:
| 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 | |||||||
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
That one I can’t find the file of on this computer. If it’s necessary still I can explain these techniques over skype.