DISCOUNTED CASH FLOW (DCF) EXCEL TEMPLATE

Description

Accurately Value Investments with a Professional DCF Model

Making the right investment decisions starts with understanding the true value of future cash flows. Our Discounted Cash Flow (DCF) Excel Template is a ready-to-use tool that helps you calculate the present value of future earnings, taking into account the time value of money.

Whether you’re analysing a company, project, or equity investment, this template provides a reliable framework for accurate valuation.

What are the CAPM Variables?

If you chose using CAPM in this discounted cash flow template, you need to enter the parameters of the model:

Fill in historical data for Equity Value, Dividends, Market Value of Debt, and Interest Expenses. This DCF Template will calculate the After-Tax Cost of Debt by dividing Interest Expenses by the Market Value of Debt, less the tax effect of the cost of debt.

According to your method, this Discounted Cash Flow Excel tool can calculate the Cost of Equity by dividing Dividends by the Market Value of Equity or using CAPM. WACC is equal to the average cost of equity and debt, weighted on equity and debt market values respectively.

You can override calculated interest rates with manually entered User-Defined Rates. Then you can go to the Cash Flow section.

Cash Flow

Firstly, input the historical financials (from the income statement) along with forecasted figures for the current year. You must enter at least three sequential years of data, including the most recent forecast. You can use the blue written parameters to predict future cash flows.

In this Excel tool, the Cash Flow Projection parameters are calculated automatically, but you can enter any parameter value manually. Unless you enter a User-Defined Value, the mean value will be used in the projected future cash flows.

In addition, the present value of expected cash flows for the next 10 years shows up by applying WACC. The terminal value represents the present value of cash flows beyond the 10-year period. 

Why Use a DCF Model?

A dollar today is worth more than a dollar tomorrow. The DCF method incorporates this principle, discounting future cash flows to determine their present value. With this Excel tool, you can:

• Forecast future cash flows with confidence

• Apply appropriate discount rates, including WACC (Weighted Average Cost of Capital)

• Assess equity, debt, or entire business valuations

• Compare investment opportunities and risk levels more effectively

Key Features

• Flexible Valuation Methods – Choose between dividend-based calculations or CAPM (Capital Asset Pricing Model) for equity cost.

• Automated WACC Calculation – Accurately reflect risk by calculating weighted average cost of capital using historical and forecasted financial data.

• Cash Flow Projections – Input at least three years of historical and forecasted financials to generate 10-year projections automatically.

• Terminal Value Estimation – Capture the long-term growth potential of investments beyond the forecast period.

• Enterprise and Equity Value – Automatically calculate enterprise value, market capitalisation, and estimated share price.

• User-Friendly Design – Simple inputs, automated calculations, and clean results presentation.

Product Highlights

• Professional Discounted Cash Flow template in Excel

• Fully editable and print-ready

• Works on both Mac and Windows

• Compatible with Excel 2010 and later

• No VBA code or macros required

• Includes clear instructions and notes

With this DCF Excel Template, you’ll have a reliable, structured, and easy-to-use tool to evaluate investments and make informed financial decisions. Perfect for investors, analysts, business owners, and financial consultants.

Make smarter investment choices with confidence—get your Discounted Cash Flow Excel Template today.