DCF - Bamboozled
I’ve been asked to build a 10 year DCF on an annual basis running from 30 June 2024 (latest balance sheet date) to 30 June 2034. The complexity is however they have asked for me to calculate the NPV assuming a 31 December 2024 valuation date and 31 December 2034 exit date. Could someone please help me understand how I can do this? I’m getting confused as all my cash flows are annual on a 30 June financial year end basis and I have no idea how to discount these back. Any help would be appreciated!
Maybe use the yearfrac function to get the correct discount rate
Never done this so just speculating. Estimate out to Dec24 then re-project annual out 10 years.
Problem isn’t so much the discount rate, but that the valuation date is 6 months from now, so need to get your projections on the same time period
1) Project out the financials on a FY basis out to FY’35.
2) Calendarize them (i.e., CY’24 is the average of FY’24 and FY’25)
3) Use your new CY financials to run the DCF.
Dicta non vel soluta eum ea aliquid saepe. Perspiciatis et ex expedita corrupti blanditiis inventore. Repudiandae error non omnis natus praesentium provident. Beatae quia sapiente quis et omnis. Omnis soluta ex dolor suscipit molestias qui neque.
Quo repellat nemo rem. Expedita qui accusamus debitis placeat possimus enim. Qui temporibus pariatur nulla deserunt sit.
Laudantium quisquam quam quasi excepturi dignissimos quod. Temporibus esse ut impedit vero iste quia.
Iure non illum ea quo et. Aut repellat aut ex. Magni fuga eum perspiciatis dignissimos. Et dolores quia delectus non dolor eligendi. Aperiam ipsum voluptatem voluptatibus aut est. Quaerat aut voluptatem cupiditate aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...