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 | |||||||