Discounted Cash Flow, or DCF is a method of valuing a company. In this method, the value of a company is equal to the amount of free cash flows expected to be generated by the company in the future and discounted at a rate that mesures its risk profile. The discount rate used is the appropriate Weighted Average Cost of Capital (WACC), that reflects the risk of the cashflows.

Enterprise Value is the sum of

  • future free cash flows that are discounted over the explicit forecast period, i.e. the period over which there is visibility on the company's operations;
  • a discounted terminal value that is calculated on the basis of an estimated growth rate carried to perpetuity;


Assumptions
WACC %
Perpetual Growth Rate : %
Corporate income tax :
%
Capital expenditures :
x depreciation
Forecast Period : years

Year 2010 data
Net Sales : $
EBITDA : $
Depreciation and amortization : $
Operating profit (EBIT) : $
Working Capital : $

Simplified Business Plan - Financial ratios 2011e 2012e 2013e 2014e 2015e 2016e 2017e 2018e 2019e 2020e
Sales Growth rate % % % % % % % % % %
EBITDA Margin % % % % % % % % % %
Depreci. and amortiz. (%Sales) % % % % % % % % % %
Working capital (%Sales) % % % % % % % % % %