Given these parameters:
-Data is already available (copy-paste to excel or import)
-Supporting schedules are the following: Debt, Working Cap., Depreciation, PPE
-Reports and analysis for revenue growth assumptions available
-IS items are projected based on Rev. (except Interest and Dep.)
-BS items are projected as % of Rev. / COGS (except working capital and fixed assets)
-Simple / minimal stock options and convertibles tranches for treasury stock method.
I know that quality and accuracy of work should not be compromised for speed but I'm just pacing myself since I'm practicing modeling.
With the information you have, a DCF should really only take you about 5 mins maximum.
bump
where do people get financials they can just import? yahoo finance?
Old thread but since it’s bumped thought I’d comment incase anyone was still wondering
If you have got all of this on hand, and assuming you have built a DCF before so you understand the concepts behind it, I’d say maybe 1 hour based on Excel proficiency?
The most arduous process here is setting up a well formatted and structured model. If you’re practicing for a modelling test, it goes a long way to have format and structure down perfectly.
Something I put together when I was still super early into the job was a “skeleton model” (not sure if this is common practice elsewhere but it was at my firm). The skeleton had generic sheets that laid out cell styles, named cells, timing flags (construction modelling - infra specific), checks with descriptions, and a sheet that has “blocks” that can be copied or adjusted for common sections (inputs, IS/BS/CF, schedules etc). Then every model I put together was based off this initial file.
NB - making really good precedents for these things goes a long way, try do it in your down time if you feel up to it. I wouldn’t say I’m an amazing modeller but having access to these is really helpful when you get hit with a fire drill. And by good precedents I don’t mean just rename lines for a different company, always best to try make it bespoke for the company but having all the ancillary elements out of the way
If you have something like the above or a good precedent model, I’d say around 45 minutes is feasible if you know how a DCF links together. Can take longer if you are uncertain about specific nuances and where they flow through.
Could also take longer if you want to build in fancy components like robust scenarios / scenario managers, fancy charts or other outputs.
I’d advise taking a bit more time and not speed running it first and trying to check links after, it’s better to take it a bit slower and make sure everything links properly
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