No need for spreadsheets anymore! If you are a student, a professor or a pro in the corporate valuation field and want to do fast DCF, this app is for you! Easily perform quick cross-check during a client meeting or when reviewing students' work!
Easy to use, the DCF tool allows you to perform quick DCF valuations based upon general assumptions: business plan time horizon, revenue & opex assumptions, growth rate, discount rate, capex, net working capital changes etc.
This app also offers powerful functionality usually proposed in spreadsheets and with which M&A bankers are familiar: goal seek and 2D sensitivities table!
Very user-friendly (for inputs, use textboxes or sliders): you can derive your cash flow projections starting from four types of year 1-financial metrics (associated to a future growth rate): either from revenue/opex assumptions / or directly from a year 1 EBITDA / or from a year 1 EBIT/ or from a year 1 free cash flow to the firm (FCFF) assumption. Under the specific year cash flow adjustment functionality (see below), projections can be customized beyond the default linear growth projections.
Entreprise value (EV) and equity value are computed and displayed instantaneously whenever you modify or update a parameter.
You can decide to activate the terminal value calculation depending on whether your business has an infinite or finite horizon (e.g. infrastructure/PPP assets, concessions).
Terminal value can be calculated using the perpetuity formula (Gordon Shapiro), an EV/EBITDA multiple assumption or the average of both.
- WACC module: the app includes an integrated module for dynamically calculating the Weighted Average Cost of Capital (WACC) based on parameters provided by the user (leverage, risk-free rate, Equity Risk Premium (ERP), unlevered beta, etc)
- the Goal Seek Tool: enables users to set a specific target for a financial metric (EV or Project IRR) and adjust changing input variable until the desired goal is achieved. This functionality is similar to goal seek functionalities commonly used in spreadsheets.
- Customized/Year Specific Cash Flow Editing ("Cash Flow Adjustment" section): adjust individual cash flows for specific years. This dual-mode capability (linear upon growth rate vs customized for specific year cash flows) allows users to choose between a straightforward projection approach or a more flexible and customized DCF valuation experience.
- 2D Sensitivity analysis: users can select two sensitivity parameters, for instance, discount rate and revenue growth, and generate automatically a 2D sensitivity table for both EV or equity value.
- Save simulations: Ability to save your DCF simulations on your device, retrieve them later, or share them using the sharing functionalities described below.
- Data export by email functionality: export your business plan, related assumptions & key outputs (including sensitivity table) through a .csv file generated automatically and attached to an email (then, you can easily paste csv data into a spreadsheet).
- Raw data import: "Raw Data Import/Export" functionality allows to send (export) and load (import) DCF cases from one user to another. This enhancement enables collaboration and exchange of DCF simulations among several DCF app users.
- Tax calculation settings: You have the option to switch between two approaches: one that includes the tax effect of debt interest deductibility directly in the business plan using EBT (after interest) as part of tax calculation, and another that considers only unlevered EBIT with cash flows being fully taxed, assuming that the tax effect of debt interest deductibility is already factored into the discount rate. Use the "Tax Calculation Settings" and "Senior Debt Parameters Settings" sections to fine tune it.
This DCF app reflects the professional expertise of its creators in the fields of mergers and acquisitions (M&A) and investment, providing a robust tool developed through hands-on experience.
