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Reverse DCF

The document presents a 2-stage discounted cash flow (DCF) model to value a company. It provides inputs like the initial cash flow, growth rates, discount rate, terminal growth rate, shares outstanding, and net debt level. It then calculates the present value of future cash flows for the first 10 years using the given inputs. It sums this with the terminal value to get the total present value of cash flows, which is then divided by shares outstanding to arrive at the DCF value per share.

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117 views

Reverse DCF

The document presents a 2-stage discounted cash flow (DCF) model to value a company. It provides inputs like the initial cash flow, growth rates, discount rate, terminal growth rate, shares outstanding, and net debt level. It then calculates the present value of future cash flows for the first 10 years using the given inputs. It sums this with the terminal value to get the total present value of cash flows, which is then divided by shares outstanding to arrive at the DCF value per share.

Uploaded by

kohinoor_roy5447
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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XXX: 2-Stage DCF

Figures in Rs Billion | Enter values only in red cells


Initial Cash Flow

1.994

Years
FCF Growth Rate
Discount Rate
Terminal Growth Rate

(Average of last 3 years FCF)

25
20.0%
10%
1%

Shares Outstanding (billion)


Net Debt Level

Year
1
2
3
4
5
6
7
8
9
10

Colgate
CRISIL
Dabur
HUL
ITC
Nestle
Voltas

6-10
20.0%

0.33088
1.507

Present Value Calculations


FCF
2
3
3
4
5
6
7
9
10
12

Growth
20%
20%
20%
20%
20%
20%
20%
20%
20%
20%

Initial Cash Flow

Shares Outstanding (billion)

2.98
2.03
7.65
29.64
51.52
12.08
1.99

0.272
0.071
1.756
2.163
8.016
0.096
0.331

st 3 years FCF)

Why DCF?
The
simply the present value of cash that inves
business over its lifetim
3.16
Final Calculations
Terminal Year
PV of Year 1-10 Cash Flows
Terminal Value
Total PV of Cash Flows
Number of Shares
DCF Value / Share (Rs)

Present Value
2
2
3
3
3
3
4
4
4
5

Net Debt Level

DCF

FCF Growth Rate

0.650
0.351
2.106
12.040
20.954
16.268
1.507

959
1878.9522
288
785
319
6102
257

30%
26%
26%
24%
22%
22%
20%

12
33
53
87
0
257

DCF?
The value of a business is
y the present value of cash that investors can take out of the
business over its lifetime.

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