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Discounted Cash Flow Business Valuation Calculator$ million, unless
otherwise notedInputsInstructionsLegendValuation
Date12/31/13Overview: the DCF is a fundamental valuation technique
that values your business based on the future cash flows.Blue =
InputsOperating Inputs ($M)Step 1: Input the valuation date,
operating metrics, interest rate (reflects the weighted average
cost of capital to your specific business),Green = Core
LinksRevenue$50.0long term revenue growth rate (reflects the long
term, steady state growth of your company), and tax rate.Black =
CalculationsEBITDA (Earnings)$10.0Step 2: Forecast the company's
key financials and calculate the corresponding free cash
flows.Depreciation$3.0Step 3: The spreadsheet discounts the
Projection Period and Terminal cash flows to the present using the
discount rate.Amortization$2.0Step 4: The sum of future cash flows
determines the aggregate value of the business today (summarized
below)Capital Expenditures$3.5Working Capital$0.5OutputsRate Inputs
(%)Company Value$45.5Interest Rate (Discount Rate)15.00%Company
Value / 2013 Revenue0.9xShort Term Revenue Growth Rate (still
growing)6.00%Company Value / 2013 EBITDA4.5xLong Term Revenue
Growth Rate (at maturity)3.00%Tax Rate35.00%Operating SummaryTwelve
Month Period
Ending12/31/1312/31/1412/31/1512/31/1612/31/1712/31/1812/31/1912/31/2012/31/2112/31/2212/31/23Revenue50.053.055.958.661.163.565.867.969.871.673.3%
growth--6.0%5.4%4.9%4.4%3.9%3.5%3.2%2.9%2.6%2.3%EBITDA10.010.611.211.712.212.713.213.614.014.314.7%
of
sales20.0%20.0%20.0%20.0%20.0%20.0%20.0%20.0%20.0%20.0%20.0%Depreciation3.03.23.43.53.73.83.94.14.24.34.4%
of
sales6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%Amortization2.02.02.02.02.02.02.02.02.02.02.0%
of
sales4.0%3.8%3.6%3.4%3.3%3.1%3.0%2.9%2.9%2.8%2.7%EBIT5.05.45.86.26.66.97.27.57.88.08.3%
of
sales10.0%10.2%10.4%10.6%10.7%10.9%11.0%11.1%11.1%11.2%11.3%Income
Taxes1.81.92.02.22.32.42.52.62.72.82.9% tax
rate35.0%35.0%35.0%35.0%35.0%35.0%35.0%35.0%35.0%35.0%35.0%Net
Operating Profit After Tax
("NOPAT")3.33.53.84.04.34.54.74.95.15.25.4% of
sales6.5%6.6%6.8%6.9%7.0%7.1%7.1%7.2%7.2%7.3%7.3%Plus:
Depreciation3.03.23.43.53.73.83.94.14.24.34.4% of
sales6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%6.0%Plus:
Amortization2.02.02.02.02.02.02.02.02.02.02.0% of
sales4.0%3.8%3.6%3.4%3.3%3.1%3.0%2.9%2.9%2.8%2.7%Less: Capital
Expenditures(3.5)(3.7)(3.9)(4.1)(4.3)(4.4)(4.6)(4.8)(4.9)(5.0)(5.1)%
of
sales(7.0%)(7.0%)(7.0%)(7.0%)(7.0%)(7.0%)(7.0%)(7.0%)(7.0%)(7.0%)(7.0%)Less:
Change in Working
Capital0.0(0.0)(0.0)(0.0)(0.0)(0.0)(0.0)(0.0)(0.0)(0.0)(0.0)% of
sales0.0%(0.1%)(0.1%)(0.0%)(0.0%)(0.0%)(0.0%)(0.0%)(0.0%)(0.0%)(0.0%)Plus/Less:
Change in Other Operating
Assets/Liabilities0.00.00.00.00.00.00.00.00.00.00.0% of
sales0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%Free Cash Flow
("FCF")4.85.05.25.45.65.86.06.26.36.56.6% of
sales9.5%9.4%9.3%9.2%9.2%9.2%9.1%9.1%9.1%9.1%9.0%Note: Working
Capital0.50.50.60.60.60.60.70.70.70.70.7% of
sales1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%This Discounted
Cash Flow Analysis Template (Template) and all components thereof
are provided on an as is basis and your use of the Template is at
your own risk. Axial makes no guarantees or warranties of anykind
as to the adequacy, completeness, sufficiency, or accuracy of the
Template. In no event shall Axial be liable to you, or to any third
party, for any lost profits, incidental, consequential, punitive,
special, or indirectdamages arising out of or in connection with
the use of the Template.Axial - Master Discounted Cash Flow
Analysis Template (continued)$ million, unless otherwise
notedProjection Period CalculationDiscount
Period0.51.52.53.54.55.56.57.58.59.5Discounted FCF, Assuming
Discount Rates as
Shown14.00%4.64.33.93.63.22.92.62.42.11.915.00%4.64.23.83.43.12.82.52.22.01.816.00%4.64.23.73.33.02.72.42.11.81.6Cumulative
Discounted FCF over Projection
Period14.00%31.615.00%30.416.00%29.4Terminal Value
CalculationTerminal Year EBITDA14.7Terminal Value ("TV")Present
Value of TVTerminal Year FCF6.6Perpetual Growth RatePerpetual
Growth RateTerminal Year Discount
Period9.52.50%3.00%3.50%2.50%3.00%3.50%Discount Rate15.00%Discount
Rate14.00%59.062.065.3Discount Rate14.00%17.017.818.8Discount Rate
Step1.00%15.00%54.356.859.615.00%14.415.115.8Perpetual Growth
Rate3.00%16.00%50.352.554.816.00%12.312.813.4Perpetual Growth Rate
Step0.50%Implied EBITDA MultiplePerpetual Growth
Rate2.50%3.00%3.50%Discount
Rate14.00%4.3x4.5x4.8x15.00%4.0x4.2x4.4x16.00%3.7x3.9x4.0xDiscounted
Cash Flow SummaryPerpetual Growth Rate = 2.50%Perpetual Growth Rate
= 3.00%Perpetual Growth Rate = 3.50%Discount
Rate14.00%15.00%16.00%14.00%15.00%16.00%14.00%15.00%16.00%Company
Value CalculationFCF over Projection
Period31.630.429.431.630.429.431.630.429.4Terminus17.014.412.317.815.112.818.815.813.4Company
Value48.544.841.649.445.542.250.346.242.7Company Value Attribution%
Value in Projection
Period65.0%67.9%70.5%63.9%66.9%69.7%62.7%65.9%68.7%% Value in
Terminus35.0%32.1%29.5%36.1%33.1%30.3%37.3%34.1%31.3%Implied
Valuation MultiplesCompany Value / 2013
Revenue1.0x0.9x0.8x1.0x0.9x0.8x1.0x0.9x0.9xCompany Value / 2014
Revenue0.9x0.8x0.8x0.9x0.9x0.8x0.9x0.9x0.8xCompany Value / 2013
EBITDA4.9x4.5x4.2x4.9x4.5x4.2x5.0x4.6x4.3xCompany Value / 2014
EBITDA4.6x4.2x3.9x4.7x4.3x4.0x4.7x4.4x4.0xImplied Terminal EBITDA
Multiple4.3x4.0x3.7x4.5x4.2x3.9x4.8x4.4x4.0xThis Discounted Cash
Flow Analysis Template (Template) and all components thereof are
provided on an as is basis and your use of the Template is at your
own risk. Axial makes no guarantees or warranties of anykind as to
the adequacy, completeness, sufficiency, or accuracy of the
Template. In no event shall Axial be liable to you, or to any third
party, for any lost profits, incidental, consequential, punitive,
special, or indirectdamages arising out of or in connection with
the use of the Template.
For more information on how Axial helps private companies with
their financing or exit objectives,
[email protected] a free consultation
