Axial - Discounted Cash Flow Business Valuation Calculator

$ million, unless otherwise noted

Inputs
Valuation Date
Operating Inputs ($M)
Revenue
EBITDA (Earnings)
Depreciation
Amortization
Capital Expenditures
Working Capital
Rate Inputs (%)
Interest Rate (Discount Rate)
Short Term Revenue Growth Rate (still growing)
Long Term Revenue Growth Rate (at maturity)
Tax Rate

12/31/2013
$50.0
$10.0
$3.0
$2.0
$3.5
$0.5
15.00%
6.00%
3.00%
35.00%

Instructions
Overview: the DCF is a fundamental valuation technique that values your business based on the future cash flows.
Step 1: Input the valuation date, operating metrics, interest rate (reflects the weighted average cost of capital to your specific business),
long term revenue growth rate (reflects the long term, steady state growth of your company), and tax rate.
Step 2: Forecast the company's key financials and calculate the corresponding free cash flows.
Step 3: The spreadsheet discounts the Projection Period and Terminal cash flows to the present using the discount rate.
Step 4: The sum of future cash flows determines the aggregate value of the business today (summarized below)
Outputs
Company Value
Company Value / 2013 Revenue
Company Value / 2013 EBITDA

$45.5
0.9x
4.5x

Operating Summary

Revenue
% growth

12/31/2013
50.0
--

12/31/2014
53.0
6.0%

12/31/2015
55.9
5.4%

12/31/2016
58.6
4.9%

Twelve Month Period Ending

12/31/2017
12/31/2018
12/31/2019
61.1
63.5
65.8
4.4%
3.9%
3.5%

EBITDA
% of sales
Depreciation
% of sales
Amortization
% of sales
EBIT
% of sales

10.0
20.0%
3.0
6.0%
2.0
4.0%
5.0
10.0%

10.6
20.0%
3.2
6.0%
2.0
3.8%
5.4
10.2%

11.2
20.0%
3.4
6.0%
2.0
3.6%
5.8
10.4%

11.7
20.0%
3.5
6.0%
2.0
3.4%
6.2
10.6%

12.2
20.0%
3.7
6.0%
2.0
3.3%
6.6
10.7%

12.7
20.0%
3.8
6.0%
2.0
3.1%
6.9
10.9%

13.2
20.0%
3.9
6.0%
2.0
3.0%
7.2
11.0%

Income Taxes
% tax rate
Net Operating Profit After Tax ("NOPAT")
% of sales

1.8
35.0%
3.3
6.5%

1.9
35.0%
3.5
6.6%

2.0
35.0%
3.8
6.8%

2.2
35.0%
4.0
6.9%

2.3
35.0%
4.3
7.0%

2.4
35.0%
4.5
7.1%

2.5
35.0%
4.7
7.1%

Plus: Depreciation
% of sales
Plus: Amortization
% of sales
Less: Capital Expenditures
% of sales
Less: Change in Working Capital
% of sales
Plus/Less: Change in Other Operating Assets/Liabilities
% of sales
Free Cash Flow ("FCF")
% of sales

3.0
6.0%
2.0
4.0%
(3.5)
(7.0%)
0.0
0.0%
0.0
0.0%
4.8
9.5%

3.2
6.0%
2.0
3.8%
(3.7)
(7.0%)
(0.0)
(0.1%)
0.0
0.0%
5.0
9.4%

3.4
6.0%
2.0
3.6%
(3.9)
(7.0%)
(0.0)
(0.1%)
0.0
0.0%
5.2
9.3%

3.5
6.0%
2.0
3.4%
(4.1)
(7.0%)
(0.0)
(0.0%)
0.0
0.0%
5.4
9.2%

3.7
6.0%
2.0
3.3%
(4.3)
(7.0%)
(0.0)
(0.0%)
0.0
0.0%
5.6
9.2%

3.8
6.0%
2.0
3.1%
(4.4)
(7.0%)
(0.0)
(0.0%)
0.0
0.0%
5.8
9.2%

3.9
6.0%
2.0
3.0%
(4.6)
(7.0%)
(0.0)
(0.0%)
0.0
0.0%
6.0
9.1%

0.5
1.0%

0.5
1.0%

0.6
1.0%

0.6
1.0%

0.6
1.0%

0.6
1.0%

0.7
1.0%

Note: Working Capital

% of sales

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 any
kind 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 indirect
damages arising out of or in connection with the use of the Template.

Axial - Master Discounted Cash Flow Analysis Template (continued)

$ million, unless otherwise noted
Projection Period Calculation
Discount Period
Discounted FCF, Assuming Discount Rates as Shown
14.00%
15.00%
16.00%

0.5

1.5

2.5

3.5

4.5

5.5

4.6
4.6
4.6

4.3
4.2
4.2

3.9
3.8
3.7

3.6
3.4
3.3

3.2
3.1
3.0

2.9
2.8
2.7

Cumulative Discounted FCF over Projection Period

14.00%
15.00%
16.00%

31.6
30.4
29.4

Terminal Value Calculation

Terminal Value ("TV")

Present Value of TV
Perpetual Growth Rate

14.00%
15.00%
16.00%

2.50%
59.0
54.3
50.3

14.00%
15.00%
16.00%

2.50%
4.3x
4.0x
3.7x

3.00%
62.0
56.8
52.5

3.50%
65.3
59.6
54.8

Discou
nt Rate

14.7
6.6
9.5
15.00%
1.00%
3.00%
0.50%

Discou
nt Rate

Terminal Year EBITDA

Terminal Year FCF
Terminal Year Discount Period
Discount Rate
Discount Rate Step
Perpetual Growth Rate
Perpetual Growth Rate Step

Implied EBITDA Multiple

Discou
nt Rate

Perpetual Growth Rate

3.00%
4.5x
4.2x
3.9x

3.50%
4.8x
4.4x
4.0x

Discounted Cash Flow Summary

Discount Rate
Company Value Calculation
FCF over Projection Period
Terminus
Company Value
Company Value Attribution
% Value in Projection Period
% Value in Terminus
Implied Valuation Multiples
Company Value / 2013 Revenue
Company Value / 2014 Revenue
Company Value / 2013 EBITDA
Company Value / 2014 EBITDA
Implied Terminal EBITDA Multiple

Perpetual Growth Rate = 2.50%

14.00%
15.00%

16.00%

Perpetual Growth Rate = 3.00%

14.00%
15.00%

16.00%

31.6
17.0
48.5

30.4
14.4
44.8

29.4
12.3
41.6

31.6
17.8
49.4

30.4
15.1
45.5

29.4
12.8
42.2

65.0%
35.0%

67.9%
32.1%

70.5%
29.5%

63.9%
36.1%

66.9%
33.1%

69.7%
30.3%

1.0x
0.9x
4.9x
4.6x
4.3x

0.9x
0.8x
4.5x
4.2x
4.0x

0.8x
0.8x
4.2x
3.9x
3.7x

1.0x
0.9x
4.9x
4.7x
4.5x

0.9x
0.9x
4.5x
4.3x
4.2x

0.8x
0.8x
4.2x
4.0x
3.9x

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 any
kind 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 indirect
damages arising out of or in connection with the use of the Template.

Legend
Blue = Inputs
Green = Core Links
Black = Calculations

apital to your specific business),

nding
12/31/2020
67.9
3.2%

rantees or warranties of any

nitive, special, or indirect

12/31/2021
69.8
2.9%

12/31/2022
71.6
2.6%

12/31/2023
73.3
2.3%

13.6
20.0%
4.1
6.0%
2.0
2.9%
7.5
11.1%

14.0
20.0%
4.2
6.0%
2.0
2.9%
7.8
11.1%

14.3
20.0%
4.3
6.0%
2.0
2.8%
8.0
11.2%

14.7
20.0%
4.4
6.0%
2.0
2.7%
8.3
11.3%

2.6
35.0%
4.9
7.2%

2.7
35.0%
5.1
7.2%

2.8
35.0%
5.2
7.3%

2.9
35.0%
5.4
7.3%

4.1
6.0%
2.0
2.9%
(4.8)
(7.0%)
(0.0)
(0.0%)
0.0
0.0%
6.2
9.1%

4.2
6.0%
2.0
2.9%
(4.9)
(7.0%)
(0.0)
(0.0%)
0.0
0.0%
6.3
9.1%

4.3
6.0%
2.0
2.8%
(5.0)
(7.0%)
(0.0)
(0.0%)
0.0
0.0%
6.5
9.1%

4.4
6.0%
2.0
2.7%
(5.1)
(7.0%)
(0.0)
(0.0%)
0.0
0.0%
6.6
9.0%

0.7
1.0%

0.7
1.0%

0.7
1.0%

0.7
1.0%

6.5

7.5

8.5

9.5

2.6
2.5
2.4

2.4
2.2
2.1

2.1
2.0
1.8

1.9
1.8
1.6

Present Value of TV
Perpetual Growth Rate

14.00%
15.00%
16.00%

rantees or warranties of any

nitive, special, or indirect

2.50%
17.0
14.4
12.3

3.00%
17.8
15.1
12.8

Perpetual Growth Rate = 3.50%

14.00%
15.00%

3.50%
18.8
15.8
13.4

16.00%

31.6
18.8
50.3

30.4
15.8
46.2

29.4
13.4
42.7

62.7%
37.3%

65.9%
34.1%

68.7%
31.3%

1.0x
0.9x
5.0x
4.7x
4.8x

0.9x
0.9x
4.6x
4.4x
4.4x

0.9x
0.8x
4.3x
4.0x
4.0x