Stock Valuation Spreadsheet Template

Overview

This professional-grade DCF (Discounted Cash Flow) model template helps you value stocks like a Wall Street analyst. The spreadsheet includes multiple valuation methods, sensitivity analysis, and scenario modeling.

What's Included

1. DCF Model
- 10-year financial projections
- Free cash flow calculations
- Terminal value estimation
- WACC (Weighted Average Cost of Capital) calculation
- Intrinsic value per share

2. Comparable Company Analysis
- Trading multiples comparison
- Industry benchmarking
- Peer group analysis
- Relative valuation metrics

3. Sensitivity Analysis
- Monte Carlo simulation
- Key variable impact analysis
- Scenario modeling (bull, base, bear)
- Risk assessment tools

How to Use the Template

Step 1: Input Historical Data
- Revenue (5 years)
- Operating expenses
- Capital expenditures
- Working capital changes
- Debt and equity information

Step 2: Build Assumptions
- Revenue growth rates
- Margin assumptions
- Capital intensity
- Tax rates
- Terminal growth rate

Step 3: Calculate WACC
- Cost of equity (CAPM model)
- Cost of debt
- Capital structure weights
- Tax shield benefits

Step 4: Project Cash Flows
- Revenue projections
- Operating cash flow
- Capital expenditures
- Free cash flow calculation

Step 5: Value the Company
- Present value of cash flows
- Terminal value calculation
- Enterprise value
- Equity value per share

Key Formulas Included

Free Cash Flow:
```
FCF = Operating Cash Flow - Capital Expenditures
```

WACC Formula:
```
WACC = (E/V × Re) + (D/V × Rd × (1-T))
```

Where:
- E = Market value of equity
- D = Market value of debt
- V = E + D
- Re = Cost of equity
- Rd = Cost of debt
- T = Tax rate

Terminal Value:
```
Terminal Value = FCF × (1 + g) / (WACC - g)
```

Template Features

Built-in Checks:
- Formula validation
- Error checking
- Consistency tests
- Reasonableness checks

Visualization:
- Charts and graphs
- Sensitivity tables
- Scenario comparisons
- Key metrics dashboard

Professional Formatting:
- Clean, organized layout
- Color-coded sections
- Print-ready format
- Executive summary page

Example Valuation: Apple Inc.

Key Inputs:
- Revenue Growth: 5-8% annually
- Operating Margin: 25-30%
- WACC: 8.5%
- Terminal Growth: 2.5%

Results:
- Enterprise Value: $2.8 trillion
- Equity Value: $2.7 trillion
- Value per Share: $175
- Current Price: $150
- Upside: 17%

Advanced Features

Scenario Analysis:
- Bull Case: High growth, margin expansion
- Base Case: Moderate growth, stable margins
- Bear Case: Slow growth, margin compression

Sensitivity Tables:
- WACC vs. Terminal Growth Rate
- Revenue Growth vs. Operating Margin
- Multiple variable analysis

Monte Carlo Simulation:
- 10,000 iterations
- Probability distributions
- Value at Risk (VaR)
- Confidence intervals

Best Practices

1. Conservative Assumptions
- Use realistic growth rates
- Don't extrapolate short-term trends
- Consider industry maturity
- Factor in competitive dynamics

2. Multiple Valuation Methods
- DCF as primary method
- Comparable company analysis
- Precedent transactions
- Asset-based valuation

3. Stress Testing
- Test key assumptions
- Analyze break-even points
- Consider worst-case scenarios
- Validate with market data

4. Regular Updates
- Update with quarterly results
- Revise assumptions as needed
- Monitor key value drivers
- Track actual vs. projected

Common Pitfalls to Avoid

1. Overly optimistic growth: Be realistic about long-term growth
2. Ignoring capital requirements: Factor in reinvestment needs
3. Wrong terminal value: Most sensitive assumption
4. Inappropriate WACC: Use company-specific cost of capital
5. Neglecting qualitative factors: Consider competitive moats

Download Instructions

1. Click the download button below
2. Save the Excel file to your computer
3. Enable macros for full functionality
4. Follow the instruction tab
5. Input your company data

Support and Updates

- Video tutorials available
- Email support included
- Quarterly template updates
- Access to user community

Professional Version

Upgrade to our professional version for:
- Advanced modeling features
- Industry-specific templates
- Real-time data integration
- Priority support

*This template is used by investment professionals at top-tier firms and has been validated against actual Wall Street models.*