DCF & WACC Valuation

Valuation Ch. 2, 4, 5, 6

Year 1 FCF ($M)

Year 2 FCF ($M)

Year 3 FCF ($M)

Year 4 FCF ($M)

Year 5 FCF ($M)

Equity ($M)

Debt ($M)

Cost of Equity (%)

Cost of Debt (%)

Tax Rate (%)

Method

Growth Rate (%)

Exit Multiple (x)

WACC ± (bps)

Growth ± (bps)

Enterprise Value—

PV of Cash Flows—

PV of Terminal Value—

TV as % of EV—

WACC—

Weight of Equity—

Weight of Debt—

After-Tax r_d—

Enterprise Value—

− Net Debt—

= Equity Value—

V₀ = Σ FCFₜ / (1+WACC)ᵗ + TV / (1+WACC)ⁿ

Ch. 2 — Free Cash Flow Valuation Ch. 4 — WACC Capital Structure Ch. 5 — NPV Decision Criterion Ch. 6 — Sensitivity Elasticity