Calculate terminal value using Gordon Growth Model
Discount cash flows and terminal value to present value
Sum to get enterprise value, subtract net debt for equity value
Add sensitivity tables for key assumptions
Output
Complete 4-sheet DCF model with assumptions, projections, valuation, and sensitivity
Enterprise value and equity value per share
Sensitivity analysis on WACC and terminal growth rate
Error Handling
Error
Cause
Solution
#DIV/0! in terminal value
WACC equals terminal growth
Terminal growth must be less than WACC
Negative FCF
High CapEx or WC needs
Review assumptions, may need different model
Unrealistic EV
Extreme growth assumptions
Benchmark against industry comparables
Examples
Example: Value a SaaS Company
Request: "Create a DCF model for a $50M ARR SaaS company growing 30%"
Result: 4-sheet model with 5-year projections, 12% WACC, 3% terminal growth, sensitivity tables
Example: M&A Valuation
Request: "DCF analysis for acquisition target"
Result: Model with synergy adjustments, scenario analysis, and per-share valuation