Intrinsic Valuation (DCF)

Table of Contents

• Example
• Workflow
• Common Patterns
• Guardrails
• Quick Reference

Example

Scenario: Two-stage FCFF model for a mature growth company

Inputs:

• Base year EBIT: $500M, Tax rate: 25%, CapEx: $200M, Depreciation: $150M, WC change: $20M
• High-growth period: 5 years, revenue growth 12%, reinvestment rate 50%, WACC 9%
• Stable period: perpetual growth 3%, reinvestment rate 30%, WACC 8.5%

Step-by-step: