DCF Models and Valuation

Mastering DCF Analysis in Excel Financial Modeling

Creating a robust Excel model capable of performing Discounted Cash Flow (DCF) Analysis involves a nuanced understanding of valuation methodologies and the integration of DCF analytics. This guide delves into the critical aspects of constructing a DCF model, focusing on valuation considerations and the application of DCF analysis within financial modeling.

Job Bidding Excel Template

This is a great tool for contractors that need to refine their job bidding process. I made the template as granular as possible so there are inputs for each individual line item. The calculator looks at three types of costs: wages, direct costs, and fees.

Financial Model Templates: Scaling Models vs Single Operation Models

Many of the financial models I've built here on the site can be grouped into one of two categories. Scaling or single location. An example of 'scaling' would be a financial plan for opening 10 franchises over 5 years. An example of a single location is just like it sounds, a financial plan for opening a single laundromat or single mobile home park.

Historical Home Sales, Blockchain, and Financial Feasibility

I normally focus on just financial modeling templates, but I also dabble in a bit of crypto / blockchain research as well as real estate underwriting. Here are some ideas I've found about trying to integrate something with historical home sales so there is a single, cohesive record. I think that would be valuable, but not sure the economics work.

3 Statement Modeling and Capex

Here I am looking at one of the most common types of transactions included in a 3 statement model template. It is capital expenditures or Capex. In simplest terms, it just means money spent on items that have a useful life greater than 1 year. These are generally considered long-term fixed assets. Examples involve buying buildings, equipment, and property. I'll try to explain how to connect everything below.

Fair Value vs Historical Cost Accounting

Fair value and historical cost are two fundamental valuation methods used in accounting and financial reporting. Each approach has its advantages and disadvantages, and the choice between them can significantly impact how a company's financial health is perceived. Here's a comprehensive look at both methods, their pros and cons, and an analysis of which provides better information:

Update to Multi-Family Real Estate Model: Single Property Version

 I actually walked through this update in real time as I removed property configurations two through four. You now have a single property version that comes with the download and a four property version.

Financial Model Templates for New and Innovative Businesses

I try to continually improve how I communicate the value of the financial models you will find on this site. One way to by finding ways to categorize the 100s of spreadsheets. Here, I'm going to focus on all the templates that were designed and/or can be utilized for new and innovative businesses. I consider a 'new' business something that didn't exist 10 years ago and I consider an 'old' business something that has been around for multiple decades. However, there could be models that represent a new or innovative method applied to an older business model, see below:

Real Estate Template: Adjusted Cost Basis

Calculating the adjusted cost basis of a property is a critical but complex process that involves several intricate steps and considerations. The adjusted cost basis is essentially the original purchase price of the property plus any improvements, less any depreciation, damages, or losses. This figure is crucial for tax purposes, particularly when selling or disposing of the property, as it helps determine the capital gains tax owed.

Pros and Cons of Starting a Home Service Business and Scaling

 Starting a home service business, which can range from cleaning, landscaping, home repairs, to personal training, offers several advantages and challenges. The profitability of such a venture can vary widely depending on the specific industry, location, and business model. Here's an overview of the pros and cons, potential earnings, and steps to scale up a home service business.