DCF valuations investors trust. Fully formula-linked.
Enter your revenue, costs, CAPEX and cost of capital — manual WACC or a full CAPM build-up — and download an automated discounted cash flow valuation in Excel: unlevered free cash flow, Gordon-Growth terminal value, enterprise and equity value, IRR and sensitivity tables, all live formulas.
⚡ Build My DCF Valuation Free — free (requires JavaScript)
Pricing
Build, preview and download free up to 3 years. Models from 5 to 25 years are a one-time $19.98 Excel download — no subscription.
Frequently asked questions
What is a DCF valuation model?
A DCF (discounted cash flow) model values a business as the present value of its future free cash flows plus a terminal value, discounted at the cost of capital (WACC). This tool builds the entire model in Excel automatically — forecast, discounting, terminal value, enterprise and equity value — from your assumptions.
How do I build a DCF model in Excel?
Project unlevered free cash flow (NOPAT + depreciation − CAPEX − working-capital increase), discount each period at WACC, add a discounted terminal value, then subtract net debt for equity value. Enter your assumptions here and the generator writes every one of those formulas into a linked workbook for you.
Is this DCF template really free?
Yes — build, preview and download a full 3-year DCF model free with no sign-up. Longer horizons (5 to 25 years) are a one-time $19.98 Excel download, no subscription.
What is WACC and how is it calculated?
WACC is the blended return your investors require — cost of equity weighted with after-tax cost of debt by capital structure. Enter it directly or build it via CAPM (risk-free rate + beta × equity risk premium); the workbook shows the full build-up as live formulas.
What is terminal value in a DCF?
Terminal value captures everything beyond the explicit forecast, usually via Gordon Growth: TV = FCF × (1+g) ÷ (WACC − g). It's often 50–75% of total value, so the model cross-checks it against an EV/EBITDA exit multiple and includes WACC × growth sensitivity tables.
What discount rate should I use for a startup DCF?
Early-stage equity typically demands 20–35%; the Startup template pre-loads a defensible rate you can edit. The sensitivity tables show how valuation moves across a WACC range, which is more honest than a single point estimate.
What is unlevered free cash flow (UFCF)?
UFCF is cash generated before financing: NOPAT plus depreciation, minus CAPEX and the increase in working capital. It's the numerator of enterprise-value DCF, and the model derives it line-by-line from your operating forecast.
What is the difference between enterprise value and equity value?
Enterprise value is the whole business (all capital providers); equity value is what shareholders own — EV minus net debt. The workbook computes both explicitly, plus equity IRR including the exit.
Can I run a DCF monthly or quarterly?
Yes — Annual, Quarterly or Monthly, 3 to 25 years. Discount periods adjust to fractional years automatically and the terminal value annualises correctly, which hand-built quarterly DCFs frequently get wrong.
How many years should a DCF forecast cover?
Five to ten years is typical — long enough for cash flows to mature so the terminal value isn't doing all the work. Asset-heavy businesses (real estate, energy, telecom) often justify 15–25 years, which the premium tier covers.
What growth rate should I use for terminal value?
Long-run GDP-plus-inflation territory: usually 2–3%, never at or above WACC (the formula divides by WACC − g). The model's integrity check flags it if your terminal growth breaches WACC.
Does this DCF handle taxes and loss carryforwards?
Yes — corporate tax auto-fills from your country and remains editable, with a tax schedule applying NOL carryforward so early losses shelter later profits before cash tax hits the valuation.
What is a sensitivity analysis in a DCF?
Two-way tables showing how enterprise and equity value move as WACC, terminal growth, exit multiple and EBITDA flex. Four fully formula-driven sensitivity tables are included — change an assumption and they recalculate.
DCF vs EV/EBITDA multiple — which is better?
Use both: DCF reflects your specific cash profile; multiples anchor you to market pricing. The model computes DCF enterprise value and an EV/EBITDA cross-check side by side so you triangulate rather than trust one number.
What is CAPM and when should I use it instead of entering WACC?
CAPM derives the cost of equity from risk-free rate + beta × equity risk premium — use it when you want a defensible, source-backed build-up (fundraising, valuations for third parties). Toggle 'Build via CAPM' and the workbook shows every component.
Can I use this DCF model for fundraising or investor decks?
Yes — it's an investor-grade, fully linked workbook with visible assumptions, integrity checks and a balance sheet that ties. Export the equity value, IRR and sensitivity tables straight into your deck.
What is equity IRR and why does the model show it?
Equity IRR is the annualised return to shareholders including the exit — the number PE and VC investors actually underwrite. The model computes it against your WACC hurdle and flags whether the deal creates value.
How is working capital handled in this DCF?
Through receivable, inventory and payable days (DSO/DIO/DPO): the model derives balance-sheet working capital and deducts the period increase from free cash flow — a step many DIY DCFs omit, overstating value.
Can I edit the DCF after downloading?
Fully. It's a standard unlocked .xlsx with live formulas — change WACC, growth or any blue input on the Assumptions sheet and the valuation, IRR and sensitivity tables recalculate in Excel, Google Sheets or LibreOffice.
Is a DCF valuation reliable for small businesses?
Yes, when assumptions are honest — DCF just formalises 'what cash will this business hand back?' Keep growth defensible, use the sensitivity range rather than one number, and let the integrity checks catch structural errors.
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