3-Stage DCF Model
A DCF that doesn't hide its assumptions in seven nested IFs.
finance
v3.1
2026-04-21
3 sheets
6 λ
DCF.Model.v3.xlsx
Two-tab valuation with sensitivity table and built-in scenario flips. Drop in your projections; the model walks revenue → unlevered FCF → enterprise value across three growth stages and prints a two-way sensitivity grid against WACC and terminal growth.
In the box
- One .xlsx file — three sheets (Inputs, Model, Sensitivity) plus a README tab.
- Six named LAMBDAs in the Name Manager: DCF.PV, DCF.STAGE, DCF.WACC, DCF.TERMINAL, DCF.GROWTH, DCF.STUB.
- Color-coded inputs (blue), formulas (black), outputs (green) — auditable end-to-end.
- A two-way sensitivity grid against WACC × terminal growth, regenerated on every input change.
- Compatibility notes in README for Sheets and pre-365 Excel.
Assumptions
| Variable | Default | Notes |
|---|---|---|
| WACC | 11.0% | Cell C14 — change in the Inputs sheet |
| Terminal growth (g) | 2.5% | Cell C15 — bounded ≤ WACC − 100bps |
| Forecast horizon | 5 years | Three growth stages: hyper, fade, terminal |
| Tax rate | 21.0% | Statutory US federal — overridable |
| Working-capital % of revenue | 12.0% | Applied to ΔRevenue, not Revenue |
| Stub period | mid-year | Half-year discounting convention |
Compatibility
| Target | Status | Notes |
|---|---|---|
| Excel 365 (Windows) | ok | Full support |
| Excel 365 (Mac) | ok | Full support |
| Excel 2021 | ok | Full support |
| Excel 2019 | warn | No LAMBDA — falls back to helper columns |
| Google Sheets | warn | LAMBDA syntax differs slightly — README notes |
| LibreOffice Calc | err | Not supported |
Changelog
v@c.V
2026-04-21
patch
- Fixed off-by-one in terminal-period discount factor.
- README clarifies stub-period convention.
v@c.V
2026-02-08
major
- Rewrote engine on `LAMBDA` + `REDUCE` — model now ~40% smaller.
- Sensitivity grid is now a single dynamic array.
- Breaking: renamed `wacc_rate` → `WACC`.
v@c.V
2025-11-14
minor
- Added mid-year discounting toggle.
- New Inputs validation: WACC ≥ g + 100bps.
v@c.V
2025-09-02
patch
- Fix: working-capital delta used wrong sign in Year 1.