Scribd Logo
Upload

Welcome to Scribd!

  • 18 views

    Damodaran Valuation Template!

    Uploaded by

    Sumant Walzade

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Damodaran Valuation Template!

    Uploaded by

    Sumant Walzade
    18 views11 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views11 pages

    Damodaran Valuation Template!

    Uploaded by

    Sumant Walzade

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 11

    We are giving away

    a free Valuation
    Template as well

    Investment in securities are subject to market risks


    A Discounted Cash Flow (DCF) model, popularized
    by experts like Aswath Damodaran, is a strong
    method for valuing a company.

    It involves projecting future cash flows and


    discounting them to present value using a suitable
    discount rate.

    Here’s a step-by-step guide to building a DCF


    model in Damodaran's style:
    All the mentioned securities are there for educational purposes
    only & not for recommendation

    Source: Professor Damodaran site


    Understand the Business
    and Its Lifecycle
    Identify the Business Model: Understand the
    company's revenue streams, cost structure, growth
    drivers, and competitive position.

    Lifecycle Position: Assess whether the company is


    in its startup, growth, maturity, or decline phase, as
    this affects assumptions about growth rates and
    risks.
    All the mentioned securities are there for educational purposes
    only & not for recommendation
    Forecast Free Cash
    Flows (FCFs)
    Free Cash Flow to the Firm (FCFF) is the cash
    available to all capital providers (equity and debt
    holders).
    All the mentioned securities are there for educational purposes
    only & not for recommendation

    Investment in securities are subject to market risks


    Define the Forecast
    Period
    Typically, forecast cash flows for 5-10 years
    depending on the company’s lifecycle stage.

    For high-growth companies, use a longer forecast


    period to reflect their growth potential.

    For mature businesses, a shorter horizon may


    suffice.
    All the mentioned securities are there for educational purposes
    only & not for recommendation

    Investment in securities are subject to market risks


    Estimate the
    Terminal Value
    Beyond the forecast period, calculate the value of
    the company’s cash flows assuming stable
    growth.
    All the mentioned securities are there for educational purposes
    only & not for recommendation
    Determine the
    Discount Rate
    The discount rate reflects the risk of the cash flows.
    Typically, it’s the Weighted Average Cost of Capital
    (WACC):
    All the mentioned securities are there for educational purposes
    only & not for recommendation

    Investment in securities are subject to market risks


    Discount Cash Flows to
    Present Value
    Discount the projected FCFF and terminal value to
    their present value using the WACC
    All the mentioned securities are there for educational purposes
    only & not for recommendation
    Get a Free Template
    Curious to uncover the true value of your favorite
    company?

    Comment “Valuation” below and we'll share a free


    valuation template inspired by Damodaran's
    methodology.

    It's your chance to dive deep into professional-grade


    valuation and make more informed investment
    decisions!
    All the mentioned securities are there for educational purposes
    only & not for recommendation

    Investment in securities are subject to market risks


    Learned something new? Cool!

    A brighter portfolio awaits you!


    Visit our site today!
    All the mentioned securities are there for educational purposes

    Follow us today
    only & not for recommendation

    Investment in securities are subject to market risks


    👉 Disclaimer: Investments in securities market
    are subject to market risks, read all the related
    documents carefully before investing.

    Mutual Fund investments are subject to market


    risks, read all scheme related documents
    carefully.

    PMS is not offered in commodity derivative


    segment. Insurance is the subject matter of
    solicitation.

    Registration granted by SEBI and certification


    from NISM in no way guarantee performance of
    the intermediary or provide any assurance of
    returns to investors.

    The securities quoted are for illustration only and


    are not recommendatory.

    You might also like