Free DCF Template for Stocks in Google Sheets

Free DCF Template for Stocks in Google Sheets

Do you want to make better investment decisions for your stocks? If so, you need to use a DCF template. A DCF, or discounted cash flow, is a financial model used to estimate the value of a company. This can be used to help you decide whether or not to invest in a stock. In this blog post, we will provide a free DCF template that you can use on Google Sheets!

What is the DCF template, and how can it be used to value stocks in Google Sheets?

The DCF template is a spreadsheet model that helps you calculate the fair value of a stock. Using the DCF template, you can enter your assumptions on future cash flows and discount rates to estimate what the stock should be worth today. This model can help you better understand whether or not a particular stock is undervalued or overvalued.

The beauty of his template is that, using Google Sheets, you can quickly change the assumptions in the template and get a different value for the stock you are analyzing. Better yet, the template is automatically populated with all the historical stock data you need so you focus on your analysis and maximize the chances of finding a valuable stock investment opportunity.

How to download the free DCF template?

Accessing the DCF template is very simple all you have to do is click here, and you will be automatically taken to the template.

dcf google sheets

After that, click on use template and a spreadsheet will be created with the template ready for you to access.

The important thing to note is that you can use this template for free. However, if you want to get the data automatically populated for any stock you choose, you to need to have the Wisesheets add-on. Wisesheets will allow you to access historical financials, key metrics, real-time stock data, dividend data, and more right on your Google Sheets or Excel spreadsheet. With this, you can create your favorite stock analysis templates as well as access many other pre-made templates made by the community.

How do you use the DCF template to calculate a stock's intrinsic value in Google Sheets?

Now that you have downloaded and opened the DCF template, let's review how to use it.

The first step is to make any changes you'd like across the various tabs on the input cells, which are colored in green.

The most important parts to change are:

  • The ticker
  • Current year
  • Estimated tax rate
  • Discount rate
  • Terminal growth rate
  • Beta
  • Risk-free rate
  • Statements assumptions like revenue growth etc.

With all these inputs complete, the company's intrinsic value will be computed and available in cell M19 of the DCF tab. Remember that this number will change depending on the assumptions you enter in your model.

If you are wondering how this value can be computed, the assumptions you enter provide calculations for the expected future cash flow of the company across 5 years. These cash flows are then discounted to the present value using the discount rate you entered.

Let's divide deeper into the different parts of the model.

Forecast

DCF projections

The forecast rates you use on the "Statement Model" tab in terms of the revenue growth, gross profit percentage, inventory, depreciation as a percentage of revenue, etc., play a significant role in the final value of the company. Therefore, make sure to use reasonable assumptions to keep your model realistic.

As Warren Buffet says, "it's better to be approximately right than precisely wrong."

Terminal value

Terminal value calculation

The terminal value is the value you believe the company will have when you sell the stock. There are many ways to calculate the expected terminal value of a stock. The DCF template uses the perpetual growth method, where the final free cash flow is expected to grow by the terminal growth rate and be brought back to the present using the discount rate.

You can adjust the template to your preference and change the terminal value calculation as you wish. For more methods on stock valuation, check out this post.

What are some benefits of using the DCF template for stocks in Google Sheets?

Using the DCF template for stocks in Google Sheets is a straightforward and efficient process. All you need to do is enter your assumptions about future cash flows, discount rates, and other relevant metrics to estimate what the stock should be worth today. This can help you identify whether or not the current market price of a particular stock is undervalued or overvalued.

The DCF template also provides some key benefits for investors using Google Sheets. Firstly, the template is automatically populated with all historical stock data, so you can focus on your analysis and maximize the chances of finding a valuable stock investment opportunity. Secondly, it is easy to quickly change assumptions in the DCF template and get a different stock value to help you make more informed decisions. Finally, DCF templates in Google Sheets are free, so you can quickly run the model with little cost or effort. With these benefits, this free DCF template is an essential tool for any investor who wants to make better investment decisions.

How does the DCF template compare to other stock valuation methods in Google Sheets?

The DCF template is one of many methods used to calculate the value of stocks. Other popular methods, such as the DCF, earnings multiples, and relative valuation, can also be used in Google Sheets to analyze a stock. See our stock valuation guide here.

The DCF template has advantages over some of these other methods. For example, DCF templates are free, easy to use, and can quickly update assumptions to give you a revised stock value.

Ultimately, DCF templates offer investors an efficient way of valuing stocks that are generally more accurate than other methods depending on the quality of the assumptions. This makes DCF templates a must-have tool for any investor who wants to make better investment decisions.

Conclusion

The DCF template for stocks in Google Sheets is a great way to quickly estimate the value of a stock using assumptions about future cash flows, discount rates, and other relevant metrics. The DCF template is free, easy to use, and automatically populated with historical data from Wisesheets. This can help you identify whether or not the current market price of a particular stock is undervalued or overvalued. Additionally, DCF templates offer investors an efficient way of valuing stocks that are generally more accurate than other methods depending on the quality of the assumptions. With these benefits, this free DCF template is an essential tool for any investor who wants to make better investment decisions.

So don't wait, start using the DCF template for stocks in Google Sheets today and maximize your chances of finding a valuable stock investment opportunity!

Happy investing!

Hello! I'm a finance enthusiast who fell in love with the world of finance at 15, devouring Warren Buffet's books and streaming Berkshire Hathaway meetings like a true fan.

I started my career in the industry at one of Canada's largest REITs, where I honed my skills analyzing and facilitating over a billion dollars in commercial real estate deals.

My passion led me to the stock market, but I quickly found myself spending more time gathering data than analyzing companies.

That's when my team and I created Wisesheets, a tool designed to automate the stock data gathering process, with the ultimate goal of helping anyone quickly find good investment opportunities.

Today, I juggle improving Wisesheets and tending to my stock portfolio, which I like to think of as a garden of assets and dividends. My journey from a finance-loving teenager to a tech entrepreneur has been a thrilling ride, full of surprises and lessons.

I'm excited for what's next and look forward to sharing my passion for finance and investing with others!

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