Free Excel Discounted Cash Flow Investing Spreadsheet
Previously I put up a Ben Graham formula investment spreadsheet.
As with any fair value calculating method, there are shortcomings and disadvantages. Even with this version of the DCF stock valuation, there are disadvantages but it is logical and reasonable.
This free DCF stock valuation spreadsheet utilizes the Discounted Cash Flow method, which I believe to be the most logical method of valuing a business and estimating its fair value.
Valuing a Business
The discounted cash flow intrinsic value calculation is based off FWallStreet’s method. The original spreadsheet can be downloaded from his post on JNJ.
This free version is just an enhanced version of the original spreadsheet. The underlying calculations are the same but many tweaks have been made to the formula and variables.
The full version of the discounted cash flow spreadsheet includes an entire suite of valuation tools at a great value. Buyers receive 1 year of free updates as well.
How to Use
If you have read the AAPL stock analysis post, you would have seen the screen shots of what it looks like. If you have personally used either the Benjamin Graham valuation spreadsheet or the portfolio tracking spreadsheet you will know how much time you save with all the automatic data retrieval and updating.
Once you have the valuation spreadsheets working, just be sure to enter the ticker ONLY in the yellow highlighted box. Everything starts from there.
View the full spreadsheet installation guide.
Features
Ive enhanced the spreadsheet with the following:
- financial statements from Morningstar.com
- calculating fair value
- The spreadsheet DOES NOT work with financial companies. Financial statements for financials are complicated to figure out so even Morningstar does not have any data.
IMPORTANT
Please read the guide and FAQ section. To date, I’ve been spending hours helping people with simple excel issues on a free product rather than anything spreadsheet related.
So for all excel and install problems, place all questions in the comment sections below. That way I won’t have to answer the same question again and again.
Download The Investing Spreadsheets
- Old School Value: DCF valuation Intrinsic Value Spreadsheet
- Randy’s SMF Excel Add-in
- **Spreadsheet installation guide**
- You can also download the other FREE and best DCF valuation spreadsheet.
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July 8th, 2008 at 4:25 pm
Hey Jae,
Awesome job with the blog. It is really great–mostly the spreadsheets–now if only you could help me get them to work–I am having the hardest time getting the add-ins to work. I thought I managed but then I put in a symbol ODP and I got a bunch of #NAME! things to come up on the statements tab of the Valuation Spreadsheet…Please help. Thanks.
July 8th, 2008 at 4:26 pm
Jae,
To add on to Andrei, why dont financial’s work with your sheet?
July 9th, 2008 at 9:08 am
@Andrei,
It still seems like the function isnt being called properly. Did you unzip the files to the proper folder and then point excel to the file in the folder you unzipped to?
@Luis,
if you take a look at the financial statements for financial companies such as AXP, you’ll notice that the statements are different to the regular companies. Since the template for the statements tab only applies to non-financials, I would have to create another statements tab for financials. But, I won’t be doing that because I dont know how to determine the intrinsic value for banks etc.
December 1st, 2008 at 9:55 pm
Hi Jae,
This spreadsheet is very nice looking and I was excited to see it for JNJ. However, it seems to freeze when I put in another stock symbol to get information. I have a fast internet connection, so I don’t think that’s the issue. Could it be the Morningstar site, or is there something wrong with the sheet, or does it simply take a long time in general?
Thanks
December 1st, 2008 at 10:09 pm
Hi Aurelien,
The spreadsheet freezes because it has to access the Morningstar database and then run the commands on each cell to pull the commands.
Although Morningstar loads quickly in a web browser, the excel sheet has to request the information from Morningstar for every cell. Basically it’s asking the same thing about 200 times.
That’s the cause for the delay. If you look in the bottom right corner, it will tell you the % complete.
December 1st, 2008 at 10:56 pm
To update on my previous post: The sheet is working fine, it was just slower then expected.
Very cool. I’ve already found a company that seems to be quite undervalued and also has a 10% dividend yield. MAS.
Will look more into it tomorrow.
December 2nd, 2008 at 9:53 pm
Great. Hope you find heaps of opportunities with it
December 16th, 2008 at 8:53 pm
Hi Jae,
The spreadsheet is suddenly only giving me error’s in the cells. Have you heard anything about Morningstar changing their data display, or any other reason for this?
Thanks,
Aurelien
December 16th, 2008 at 8:55 pm
I too have been getting the same error. I’m not quite sure what the error is but it seems to work again after I restart excel several times or try writing the ticker in both lower and upper case.
April 2nd, 2009 at 7:37 am
I’m running Excel on a Mac – so there is no c:/ for me to download to.
I put the files in Applications/Microsoft Office 2004/Office/Add-Ins/SMF, but I get a compile error ‘Expected: end of statement’
Can you help?
April 2nd, 2009 at 9:33 am
Spike,
It wont run on Mac. You’d have to run it off a Windows OS.
http://www.oldschoolvalue.com/intrinsic-value-spreadsheets/
October 16th, 2009 at 1:33 pm
Hi
I downloaded the free version of the DCF valuation spreadsheet. On the DCF Valuation sheet, cell C6 has a Note saying that it should use CROIC for Growth but the IF formula within cell C6 points to J32 (the median for Free Cash Flow). Based on the Note inbedded in C6, should the formula be pointing to J33 instead?
Thanks.
October 17th, 2009 at 10:00 pm
Mario,
I first used FCF, then changed to CROIC and then reverted back to FCF.
I found CROIC was sometimes much too high. Since we are looking for good companies, the managers at these companies have very good performance and money allocation skills which is what you want in an investment.
However, the growth was far to high to predict 10 years.
Which is why I changed back to FCF and also included a FCF override feature in the premium spreadsheet.
January 21st, 2010 at 9:45 am
Will your spreadsheets work with office 2000?
January 21st, 2010 at 11:25 am
No you should have at least excel 2002.
Office 2000 is a 10 year old product and doesn’t support many things.