BalanceCheat
ENDE

Help / Valuation

Discounted cash flow (DCF)

Value unlevered operating cash flows using independently selected periods and terminal assumptions.

Available modeling methods

Method / inputBehavior
Operating bridgeEBIT − operating tax + D&A − capex − operating NWC increase + supported other FCFF.
DiscountingDiscount date, year-end or mid-year convention and optional first-year stub proration.
Terminal methodsPerpetuity growth or an exit multiple, with independent metric anchor and normalization.

Choose the valuation horizon

Set the first cash-flow year, explicit end, terminal-value date and terminal metric year. They need not equal the first forecast or final model year. If terminal value follows the explicit end, intervening model cash flows are included as bridge periods. The discount date must be consistent with the cash-flow dates.

Use an operating cash-flow basis

The default uses EBIT and model tax rate for unlevered operating tax. Choosing statement tax intentionally includes financing effects. The engine uses operating working-capital cash movements to avoid double-counting supported provisions or impairment. Select reported results or canonical adjustment groups separately from the EV-equity bridge.

Review output and sensitivity

Inspect FCFF, discount factors and present values before interpreting enterprise value. Configure live WACC × growth and WACC × exit-multiple grids. Invalid perpetuity cells remain unavailable when WACC does not exceed growth. Use the bridge and positive shares for equity and per-share values.

Open in the full valuation model ↗

Documents the current implemented behavior. Example assumptions are not market data.