FCFFginzu.xls Using the Valuation Spreadsheet

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FCFFginzu.xlsUsing the Valuation Spreadsheet

• Aswath Damodaran
• A podcast

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Overview

• Suited for most non-financial service firms
• What the spreadsheet tries to do
• Value the operating assets of the firm by
  disconting the cashflows to the firm at the cost
  of capital
• Augments this value with the value on
  non-operating assets such as cash and cross
  holdings
• Estimates the value of equity and equity per share

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A picture of the model
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Inputs Financial Statement numbers
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Capitalizing RD
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Capitalizing Leases
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Normalizing Earnings..
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Market Inputs
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Ratings and Options (if any)
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A high growth period?
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Stable growth inputs
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Valuation Summary and Diagnostics..
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Reading the Output