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Home Questions DCF calculations

DCF calculations
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7:19 am
November 3, 2010


Jae Jun

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posts 1453
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The default is just set to FCF, I could have easily just set it to owner earnings and saved it.

If owner earnings and FCF differ, then you will have to figure out why. Such as whether there were any one time expenses, whether working capital was significantly higher or lower etc. Doesn't mean you have to pass but looking at both will show whether there is a hole.

After you enter your own FCF values into the bottom of the statements section, you just have to press F9 or refresh to update the numbers automatically.

10:29 pm
November 2, 2010


dmop12

Member

posts 42
1

Post edited 10:43 pm – November 2, 2010 by dmop12

Jae,

 

When calculating the price of a company using dcf I noticed that your spreadsheets use free cash flows as the starting basis instead of owner earnings. In previous posts you have said you use Buffet's definition of fcf to calculate the value of the business, why don't you use that in your dcf sheets? Also, when I use owner earnings in comparrison with fcf (or vice versa) to come up with a value of a company and they differ significantly should i pass? I also had to re engineer the spreadsheet so that when I change the numbers on the bottom of the statements tab, it will change the numbers when calculating dcf. I don't know if this is an error or not but I wanted to let you know.

 

David
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