Download a Free DCF Valuation Model Template for Excel

Tested prompts for dcf model excel template free download compared across 5 leading AI models.

BEST BY JUDGE SCORE Claude Opus 4.7 9/10

You need a DCF model in Excel, and you need it now. Maybe you're prepping for an investment banking interview next week, building a pitch for a client, or valuing a private company for an acquisition conversation. Downloading a template beats building from scratch because the structure, formula logic, and sensitivity tables are already wired up. You just plug in your numbers.

The catch: most free DCF templates floating around Google Drive and blog sidebars are either oversimplified (missing working capital detail, terminal value sanity checks, or a proper WACC build) or overbuilt for one specific industry. Picking the wrong one wastes more time than building from scratch.

This page gives you a tested prompt that generates a clean, customizable DCF model in Excel format using AI, plus four model outputs you can compare and download. You pick the one that matches your use case: a 5-year unlevered free cash flow DCF for a mature company, a two-stage model for a high-growth business, a dividend discount variant, or a stripped-down interview-ready version.

When to use this

Use a free DCF Excel template when you need a defensible intrinsic value estimate for a company with predictable cash flows, and you want to skip the formula plumbing. It works best when you have revenue, margin, and capex assumptions you can justify, and you want to test how sensitive the valuation is to WACC and terminal growth.

Equity research coverage initiation or update on a mature public company
M&A target valuation where you have access to projections or can build reasonable ones
Investment banking or private equity case study prep and interview modeling tests
Internal corporate finance review of a business unit, capex project, or acquisition candidate
CFA, MBA, or finance coursework requiring a working DCF deliverable

When this format breaks down

Early-stage startups with no revenue or negative cash flows for the foreseeable future, where venture or scorecard methods fit better
Cyclical commodity businesses at the peak or trough of a cycle, where a single projection path misleads more than it informs
Financial institutions like banks and insurers, which need a dividend discount model or residual income approach instead of unlevered FCF
Distressed or restructuring situations where liquidation value or sum-of-the-parts is more honest than going-concern DCF

The prompt we tested

You are a financial modeling expert specializing in DCF (Discounted Cash Flow) valuation. Generate a complete, ready-to-use DCF model structure that the user can recreate in Excel, including all formulas, assumptions, and layout specifications.

Output a complete DCF model blueprint organized into labeled sections (Assumptions, Revenue Build, Operating Model, Free Cash Flow, WACC, Terminal Value, Valuation Summary, Sensitivity Table). For each section, provide a table with column headers, row labels, sample values, and exact Excel formulas (e.g., =NPV(), =SUM(), =B5*(1+C5)). End with concise step-by-step instructions for recreating the template in Excel and a note that the user can copy the tables directly into cells A1 of each sheet.

Company/Scenario details:
I want to build a 5-year DCF model for a SaaS company with $20M in current revenue, 25% annual growth tapering to 10%, 75% gross margins, and a target WACC around 10%. I need something I can drop into Excel today to pitch to my investment committee.

Provide the full DCF template structure with clearly labeled tabs, cell references, formulas, and step-by-step instructions to build it in Excel. Include a link-ready layout the user can copy directly into a spreadsheet.

Model comparison

Model	Quality	Cost	Latency	Tokens
Claude Opus 4.7	9	$0.1603	18.3s	449 / 2048
Claude Haiku 4.5	8	$0.0106	14.1s	311 / 2048
GPT-5.4	Not run yet
Gemini 2.5 Pro	Not run yet
Grok 4.1 Fast Reasoning	8	$0.0011	43.9s	425 / 2048

Outputs

Claude Opus 4.7 9/10

# 5-Year DCF Model: SaaS Company Valuation
**Ready-to-Build Excel Template | Current Revenue: $20M**

Below is a complete, copy-paste-ready DCF blueprint organized into 8 tabs. Each table is designed to be pasted into **cell A1** of a new sheet in Excel.

---

## 📋 TAB 1: Assumptions

Paste into cell **A1** of a sheet named `Assumptions`:

| Cell | A (Label) | B (Value) | Notes |
|------|-----------|-----------|-------|
| A1 | **KEY ASSUMPTIONS** | | |
| A2 | Current Revenue ($M) | 20.00 | Year 0 baseline |
| A3 | Revenue Growth Y1 | 25% | |
| A4 | Revenue Growth Y2 | 22% | |
| A5 | Revenue Growth Y3 | 18% | |
| A6 | Revenue Growth Y4 | 14% | |
| A7 | Revenue Growth Y5 | 10% | Terminal year growth |
| A8 | Gross Margin | 75% | |
| A9 | S&M % of Revenue | 40% | |
| A10 | R&D % of Revenue | 20% | |
| A11 | G&A % of Revenue | 10% | |
| A12 | D&A % of Revenue | 3% | |
| A13 | CapEx % of Revenue | 4% | |
| A14 | Change in NWC % of Rev | 2% | |
| A15 | Tax Rate | 25% | |
| A16 | WACC | 10% | |
| A17 | Terminal Growth Rate | 3% | Perpetual |
| A18 | Shares Outstanding (M) | 50.0 | |
| A19 | Net Debt ($M) | 10.0 | Debt minus cash |

---

## 📈 TAB 2: Revenue Build

Paste into cell **A1** of a sheet named `Revenue`:

| Cell | A | B | C | D | E | F | G |
|------|---|---|---|---|---|---|---|
| 1 | **REVENUE BUILD** | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 2 | Revenue ($M) | `=Assumptions!B2` | `=B2*(1+Assumptions!B3)` | `=C2*(1+Assumptions!B4)` | `=D2*(1+Assumptions!B5)` | `=E2*(1+Assumptions!B6)` | `=F2*(1+Assumptions!B7)` |
| 3 | Growth Rate | — | `=Assumptions!B3` | `=Assumptions!B4` | `=Assumptions!B5` | `=Assumptions!B6` | `=Assumptions!B7` |

**Expected output:** 20.00 → 25.00 → 30.50 → 35.99 → 41.03 → 45.13

---

## 💼 TAB 3: Operating Model

Paste into cell **A1** of a sheet named `Operating`:

| Cell | A | B | C | D | E | F |
|------|---|---|---|---|---|---|
| 1 | **OPERATING MODEL** | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 2 | Revenue | `=Revenue!C2` | `=Revenue!D2` | `=Revenue!E2` | `=Revenue!F2` | `=Revenue!G2` |
| 3 | COGS | `=-B2*(1-Assumptions!$B$8)` | `=-C2*(1-Assumptions!$B$8)` | `=-D2*(1-Assumptions!$B$8)` | `=-E2*(1-Assumptions!$B$8)` | `=-F2*(1-Assumptions!$B$8)` |
| 4 | Gross Profit | `=B2+B3` | `=C2+C3` | `=D2+D3` | `=E2+E3` | `=F2+F3` |
| 5 | S&M Expense | `=-B2*Assumptions!$B$9` | `=-C2*Assumptions!$B$9` | `=-D2*Assumptions!$B$9` | `=-E2*Assumptions!$B$9` | `=-F2*Assumptions!$B$9` |
| 6 | R&D Expense | `=-B2*Assumptions!$B$10` | `=-C2*Assumptions!$B$10` | `=-D2*Assumptions!$B$10` | `=-E2*Assumptions!$B$10` | `=-F2*Assumptions!$B$10` |
| 7 | G&A Expense | `=-B2*Assumptions!$B$11` | `=-C2*Assumptions!$B$11` | `=-D2*Assumptions!$B$11` | `=-E2*Assumptions!$B$11` | `=-F2*Assumptions!$B$11` |
| 8 | EBITDA | `=B4+B5+B6+B7` | `=C4+C5+C6+C7` | `=D4+D5+D6+D7` | `=E4+E5+E6+E7` | `=F4+F5+F6+F7` |
| 9 | D&A | `=-B2*Assumptions!$B$12` | `=-C2*Assumptions!$B$12` | `=-D2*Assumptions!$B$12` | `=-E2*Assumptions!$B$12` | `=-F2*Assumptions!$B$12` |
| 10 | EBIT | `=B8+B9` | `=C8+C9` | `=D8+D9` | `=E8+E9` | `=F8+F9` |
| 11 | Taxes | `=IF(B10>0,-B10*Assumptions!$B$15,0)` | `=IF(C10>0,-C10*Assumptions!$B$15,0)` | `=IF(D10>0,-D10*Assumptions!$B$15,0)` | `=IF(E10>0,-E10*Assumptions!$B$

Claude Haiku 4.5 8/10

# Complete 5-Year SaaS DCF Model Template

I'll provide a production-ready DCF model you can copy directly into Excel. This includes all formulas, assumptions, and sensitivity analysis.

---

## SECTION 1: ASSUMPTIONS

**Sheet Name: "Assumptions"**

| Line Item | Year 0 (Base) | Unit | Formula/Notes |
|-----------|---------------|------|---------------|
| **Revenue Assumptions** | | | |
| Current Revenue (Y0) | $20,000,000 | USD | Base case input |
| Revenue Growth Rate Y1 | 25% | % | Year 1 growth |
| Revenue Growth Rate Y2 | 22% | % | Tapering growth |
| Revenue Growth Rate Y3 | 18% | % | Continued taper |
| Revenue Growth Rate Y4 | 14% | % | Maturing growth |
| Revenue Growth Rate Y5 | 10% | % | Terminal growth |
| | | | |
| **Operating Margin Assumptions** | | | |
| Gross Margin % | 75% | % | Constant assumption |
| OPEX as % of Revenue | | | |
| – Sales & Marketing | 28% | % | % of Revenue |
| – R&D | 18% | % | % of Revenue |
| – G&A | 12% | % | % of Revenue |
| Total OPEX | 58% | % | S&M + R&D + G&A |
| EBITDA Margin | 17% | % | GM% - OPEX% |
| | | | |
| **Tax & Working Capital** | | | |
| Tax Rate | 25% | % | Federal + State |
| Capex as % of Revenue | 3% | % | Annual capex spend |
| NWC as % of Revenue | 8% | % | Days Sales Outstanding |
| | | | |
| **WACC Components** | | | |
| Risk-Free Rate | 4.0% | % | 10-yr Treasury yield |
| Equity Risk Premium | 6.5% | % | Market risk premium |
| Beta | 1.2 | x | SaaS company beta |
| Cost of Equity (Re) | 11.8% | % | =4.0% + 1.2 * 6.5% |
| | | | |
| **Capital Structure** | | | |
| Target Debt/Enterprise Value | 20% | % | D/(D+E) ratio |
| Target Equity/Enterprise Value | 80% | % | E/(D+E) ratio |
| Cost of Debt (Rd) | 5.5% | % | Blended borrowing rate |
| After-Tax Cost of Debt | 4.1% | % | =5.5% * (1 - 25%) |
| **WACC** | **10.0%** | % | =80% * 11.8% + 20% * 4.1% |
| | | | |
| **Terminal Value Assumptions** | | | |
| Terminal Year Growth Rate | 3.0% | % | Perpetual growth |
| Terminal EBITDA Multiple (Alt) | 12.0x | x | Exit multiple check |

---

## SECTION 2: REVENUE BUILD & OPERATING MODEL

**Sheet Name: "Financials"**

| Line Item | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|-----------|--------|--------|--------|--------|--------|
| **REVENUE** | | | | | |
| Prior Year Revenue | $20,000,000 | =B5 | =C5 | =D5 | =E5 |
| Growth Rate | 25% | 22% | 18% | 14% | 10% |
| **Revenue** | =20000000*(1+B7) | =B5*(1+C7) | =C5*(1+D7) | =D5*(1+E7) | =E5*(1+F7) |
| | **$25,000,000** | **$30,500,000** | **$35,990,000** | **$41,028,200** | **$45,130,020** |
| | | | | | |
| **GROSS PROFIT** | | | | | |
| Gross Margin % | 75% | 75% | 75% | 75% | 75% |
| **Gross Profit** | =B10*75% | =C10*75% | =D10*75% | =E10*75% | =F10*75% |
| | **$18,750,000** | **$22,875,000** | **$26,992,500** | **$30,771,150** | **$33,847,515** |
| | | | | | |
| **OPERATING EXPENSES** | | | | | |
| Sales & Marketing (28% of Rev) | =B10*28% | =C10*28% | =D10*28% | =E10*28% | =F10*28% |
| | $7,000,000 | $8,540,000 | $10,077,200 | $11,487,896 | $12,636,406 |
| R&D (18% of Rev) | =B10*18% | =C10*18% | =D10*18% | =E10*18% | =F10*18% |
| | $4,500,000 | $5,490,000 | $6,478,200 | $7,385,076 | $8,123,404 |
| G&A (12% of Rev) | =B10*12% | =C10*12% | =D10*12% | =E10*12% | =F10*12% |
| | $3,000,000 | $3,660,000 | $4,318,800 | $4,923,384 | $5,415,602 |
| **Total OPEX** | =B18+B21+B24 | =C18+C21+C24 | =D18+D21+D24 | =E18+E21+E24 | =F18+F21+F24 |
| | **$14,500,000** | **$17,690,000** | **$20,874,200** | **$23,796,356** | **$26,175,412** |
| | | | | | |
| **EBITDA** | =B13-B26 | =C13-C26 | =D13-D26 | =E13-E26 | =F13-F26 |
| EBITDA Margin % | =B27/B10 | =C27/C10 | =D27/D10 | =E27/E10 | =F27/F10 |
| | **$4,250,000** | **$5,185,000** | **$6,118,300** | **$6,974,794** | **$7,672,103** |
| | **17.0%** | **17.0%** | **17.0%** | **17.0%** | **17.0%** |

---

## SECTION 3: FREE CASH FLOW CALCULATION

**Sheet Name: "Financials" (continuation)**

| Line Item | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|-----------|--------|--------|--------|--------|--------|
| **NOPAT (Net Operating Profit After Tax)** | | | | | |
| EBITDA | $4,250,000 | $5,185,000 | $6,118,300 | $6,974,794 | $7,672,103 |
| D&A (assume % of Capex) | =B38*2% | =C38*2% | =D38*2% | =E38*2% | =F38*2% |
| | $500,000 | $610,000 | $719,800 | $820,564 | $902,601 |
| **EBIT** | =B27-B36 | =C27-C36 | =D27-D36 | =E27-E36 | =F27-F36 |
| | $3,750,000

Grok 4.1 Fast Reasoning 8/10

### DCF Model Blueprint for SaaS Company

This is a complete, ready-to-use 5-year DCF model for a SaaS company starting with $20M revenue ($20,000 in $000s units). All figures are in $000s except per-share values and percentages. Growth tapers from 25% to 14% in explicit forecast (Year 5 growth), with terminal growth at 10% (as specified). Gross margins 75% constant. OpEx assumptions yield ~17% EBITDA margin initially, improving slightly. WACC 10%. No net debt assumed (Enterprise Value = Equity Value). Sensitivity on WACC (8-12%) and terminal growth (8-12%).

**Model Structure: 8 Excel Tabs (Sheets)**
- Create a new Excel workbook.
- Rename sheets to: `Assumptions`, `Revenue`, `Operating`, `FCF`, `WACC`, `Terminal`, `Valuation`, `Sensitivity`.
- All sheets use columns A-G for row labels/Yr0-Y5 (except where noted). Paste tables below **directly into A1** of each sheet (copy markdown table → paste special as text/values in Excel → convert formula text to live formulas by selecting cells and Ctrl+H replace "=" with "=" or edit).
- Cross-references use sheet names (e.g., `=Assumptions!B4`).
- Units: All $ in $000s; % as decimals (e.g., 0.25 for 25%).

#### 1. Assumptions Tab
Vertical list of key drivers. Paste table into A1.

|     | A                          | B      |
|-----|----------------------------|--------|
| 1   | SaaS DCF - Assumptions     |        |
| 2   |                            |        |
| 3   | Revenue Drivers            |        |
| 4   | Current Revenue (Yr0, $000s)| 20000  |
| 5   | Growth Y1                  | 0.25   |
| 6   | Growth Y2                  | 0.25   |
| 7   | Growth Y3                  | 0.22   |
| 8   | Growth Y4                  | 0.18   |
| 9   | Growth Y5                  | 0.14   |
| 10  | Terminal Growth Rate       | 0.10   |
| 11  |                            |        |
| 12  | Margins (% of Revenue)     |        |
| 13  | Gross Margin               | 0.75   |
| 14  | Sales & Marketing (S&M)    | 0.30   |
| 15  | R&D                        | 0.15   |
| 16  | G&A                        | 0.10   |
| 17  |                            |        |
| 18  | Cash Flow Drivers (% Rev)  |        |
| 19  | Tax Rate                   | 0.25   |
| 20  | D&A                        | 0.03   |
| 21  | CapEx                      | 0.05   |
| 22  | ΔNWC (% of Revenue Growth) | 0.20   |
| 23  |                            |        |
| 24  | Valuation Drivers          |        |
| 25  | WACC                       | 0.10   |
| 26  | Fully Diluted Shares (M)   | 50     |

#### 2. Revenue Build Tab
Horizontal forecast. Links to Assumptions. Paste into A1.

|     | A             | B       | C              | D              | E              | F              | G              |
|-----|---------------|---------|----------------|----------------|----------------|----------------|----------------|
| 1   | Revenue Build | Yr 0    | Yr 1           | Yr 2           | Yr 3           | Yr 4           | Yr 5           |
| 2   | Revenue       | =Assumptions!B4 | =B2*(1+Assumptions!B5) | =C2*(1+Assumptions!B6) | =D2*(1+Assumptions!B7) | =E2*(1+Assumptions!B8) | =F2*(1+Assumptions!B9) |
| 3   | Growth %      | -       | =Assumptions!B5 | =Assumptions!B6 | =Assumptions!B7 | =Assumptions!B8 | =Assumptions!B9 |
| 4   |               | 20,000  | 25,000         | 31,250         | 38,188         | 45,082         | 51,393         | *(Sample values after formulas calculate)*

#### 3. Operating Model Tab
P&L build. Links Revenue for Rev. Paste into A1.

|     | A                  | B         | C                  | D                  | E                  | F                  | G                  |
|-----|--------------------|-----------|--------------------|--------------------|--------------------|--------------------|--------------------|
| 1   | Operating Model    | Yr 0      | Yr 1               | Yr 2               | Yr 3               | Yr 4               | Yr 5               |
| 2   | Revenue            | =Revenue!B2 | =Revenue!C2        | =Revenue!D2        | =Revenue!E2        | =Revenue!F2        | =Revenue!G2        |
| 3   | Gross Profit       | =B2*(1-Assumptions!B13) | =C2*(1-Assumptions!B13) | =D2*(1-Assumptions!B13) | =E2*(1-Assumptions!B13) | =F2*(1-Assumptions!B13) | =G2*(1-Assumptions!B13) |
| 4   | % Margin           | =B3/B2    | =C3/C2             | =D3/D2             | =E3/E2             | =F3/F2             | =G3/G2             |
| 5   | S&M                | =B2*Assumptions!B14 | =C2*Assumptions!B14 | =D2*Assumptions!B14 | =E2*Assumptions!B14 | =F2*Assumptions!B14 | =G2*Assumptions!B14 |
| 6   | R&D                | =B2*Assumptions!B15 | =C2*Assumptions!B15 | =D2*Assumptions!B15 | =E2*Assumptions!B15 | =F2*Assumptions!B15 | =G2*Assumptions!B15 |
| 7   | G&A                | =B2*Assumptions!B16 | =C2*Assumptions!B16 | =D2*Assumptions!B16 | =E2*Assumptions!B16 | =F2*Assumptions!B16 | =G2*Assumptions!B16 |
| 8   | EBITDA             | =B3-SUM(B5:B7) | =C3-SUM(C5:C7)     | =D3-SUM(D5:D7)     | =E3-SUM(E5:E7)     | =F3-SUM(F5:F7)     | =G3-SUM(G5:G7)     |
| 9   | % Margin           | =B8/B2    | =C8/C2             | =D8/D2             | =E8/E2             | =F8/F2             | =G8/G2             |
| 10  | D&A                | =B2*Assumptions!B20 | =C2*Assumptions!B20 | =D2*Assumptions!B20 | =E2*Assumptions!B20 | =F2*Assumptions!B20 | =G2*Assumptions!B20 |
| 11  | EBIT               | =B8-B10   | =C8-C10            | =D8-D10            | =E8-E10            | =F8-F10            | =G8-G10            |
| 12  | Sample: EBITDA $   | 3,500     | 5,625              | 7,969              | 10,461             | 13,013             | 15,860             | *(After calc)*

#### 4. Free Cash Flow Tab
FCFF calc. Links Operating. ΔNWC = assump % * (Rev_t - Rev_{t-1}). Paste into A1.

|     | A             | B      | C         | D         | E         | F         | G         |
|-----|---------------|--------|-----------|-----------|-----------|-----------|-----------|
| 1   | Free Cash Flow| Yr 0   | Yr 1      | Yr 2      | Yr 3      | Yr 4      | Yr 5      |
| 2   | EBIT          | =Operating!B11 | =Operating!C11 | =Operating!D11 | =Operating!E11 | =Operating!F11 | =Operating!G11 |
| 3   | (-) Taxes     | =-B2*Assumptions!B19 | =-C2*Assumptions!B19 | =-D2*Assumptions!B19 | =-E2*Assumptions!B19 | =-F2*Assumptions!B19 | =-G2*Assumptions!B19 |
| 4   | NOPAT         | =B2+B3 | =C2+C3    | =D2+D3    | =E

What makes these work

01

Separate assumptions from formulas
Keep all inputs on a dedicated assumptions tab or color-coded blue. This lets anyone stress-test the model without hunting through formulas, and it's the first thing interviewers and senior bankers check.
02

Always include a sensitivity table
A two-variable data table on WACC and terminal growth is non-negotiable. A point estimate looks naive. A range from $230M to $360M tells the reader you understand the uncertainty.
03

Sanity check terminal value weight
If terminal value is more than 75% of total enterprise value, your explicit forecast period is too short or your terminal growth is too aggressive. Extend the projection or lower the perpetuity assumption.
04

Tie the model to historical financials
Paste in 3 years of actuals next to your projections. If your forecast margins jump from 12% to 25% with no explanation, the model loses credibility immediately.

More example scenarios

#01 · Valuing a SaaS company for an acquisition pitch

Input

Build a 5-year DCF for a B2B SaaS company with $40M ARR, 25% YoY growth decelerating to 10% by year 5, 80% gross margin, 15% EBITDA margin expanding to 25%, capex at 3% of revenue, WACC 11%, terminal growth 3%.

Expected output

Excel template with revenue build, margin schedule, FCF projection arriving at $8M in year 1 scaling to $22M in year 5, terminal value of $377M using Gordon Growth, discounted enterprise value of approximately $285M, plus a WACC vs terminal growth sensitivity table ranging from $230M to $360M.

#02 · Interview case study for a consumer goods company

Input

Create a simple DCF for a packaged foods company with $2B revenue growing 4% annually, 18% EBIT margin, 25% tax rate, $80M annual capex, $60M D&A, working capital at 8% of revenue change, WACC 8%, exit multiple of 10x EBITDA.

Expected output

Clean one-tab Excel model with unlevered FCF of roughly $235M year 1, terminal value via exit multiple of $4.2B, enterprise value around $3.1B, equity bridge subtracting $400M net debt, and implied share price based on 100M shares outstanding.

#03 · Two-stage DCF for a high-growth fintech

Input

Model a fintech with 50% revenue growth for 3 years, then transitioning to 15% for 5 years, then 3% terminal. Starting revenue $150M, path to 30% FCF margin by year 8, WACC 13% reflecting execution risk.

Expected output

Two-stage Excel model separating hyper-growth and maturation phases, year-by-year FCF build, terminal value anchored at stable-state economics, discounted EV around $2.8B with a scenario tab showing bull/base/bear outcomes from $1.9B to $4.1B.

#04 · Capex project evaluation inside a manufacturer

Input

Evaluate a new production line: $50M upfront capex, 7-year useful life, incremental revenue of $30M per year growing 2%, 35% contribution margin, incremental working capital $3M, hurdle rate 10%.

Expected output

Project-level DCF in Excel showing annual incremental FCF of $6-8M, NPV of approximately $12M, IRR of 16%, payback in year 5, and a sensitivity table across hurdle rate and revenue assumptions to justify the investment to the capital committee.

Common mistakes to avoid

Using terminal growth above GDP
Setting perpetuity growth at 5% or 6% implies the company grows faster than the economy forever. Stick to 2-3% for developed markets. Anything higher inflates valuation unrealistically.
Mismatching WACC and cash flows
Discounting unlevered free cash flow with cost of equity instead of WACC is a classic error. Unlevered FCF goes with WACC, levered FCF goes with cost of equity. Get this wrong and the valuation is meaningless.
Ignoring working capital
Many free templates skip changes in working capital or lump it into a single line. For growing companies, working capital drag can shave 10-20% off FCF. Model receivables, inventory, and payables separately.
Double-counting synergies or debt
Adding synergy cash flows to projections and then bumping the multiple both ways inflates value twice. Same with forgetting to subtract debt in the equity bridge. Each adjustment goes in exactly one place.
Hardcoding values over formulas
Typing $100M into a cell instead of linking to an assumption breaks the model the moment someone changes an input. Every number should trace back to a driver on the assumptions tab.

Related queries

Frequently asked questions

Is there a truly free DCF Excel template with no signup?

Yes. The templates linked on this page download directly as .xlsx files with no email gate. You can also generate a custom version using the AI prompt shown above, which outputs a ready-to-paste Excel structure tailored to your specific company or industry.

What should a basic DCF model in Excel include?

At minimum: a revenue and margin projection for 5-10 years, unlevered free cash flow calculation, WACC build, terminal value (Gordon Growth or exit multiple), discounted enterprise value, equity bridge, and a sensitivity table. Separate tabs for assumptions, model, and output make it presentable.

Can I use AI to build a DCF model from scratch?

You can use AI to generate the structure, formulas, and even industry-specific assumption ranges, then paste the output into Excel. The prompt on this page produces a working framework in under a minute. You still need to validate the inputs and logic before relying on it for a real decision.

What's the difference between a 1-stage and 2-stage DCF?

A 1-stage DCF applies constant growth assumptions across the projection period, suitable for mature companies. A 2-stage DCF models an explicit high-growth phase followed by a stable terminal phase, which fits companies transitioning from hypergrowth to maturity like SaaS or fintech.

How long should the explicit forecast period be?

Five to ten years is standard. Five works for stable businesses. Ten is better for high-growth companies that haven't reached steady-state margins. The rule of thumb: project until growth, margins, and reinvestment rates stabilize, then use terminal value.

Should I use Gordon Growth or exit multiple for terminal value?

Run both. Gordon Growth is theoretically cleaner but very sensitive to the growth and WACC spread. Exit multiple grounds the valuation in market comps. If the two methods produce wildly different values, your assumptions are inconsistent and you need to investigate.