title small bio t4 t9
t1 t5 t10
t3 t6 t11
t2 t8  

 

 

 

Spreadsheet Programs

Hi! With time, the number of spreadsheets on this page has also increased. To help you in finding the spreadsheet that you might want, I have categorized the spreadsheets into the following groups:

  1. Corporate finance spreadsheets: These spreadsheets are most useful if you are interested in conventional corporate financial analysis. It includes spreadsheets to analyze a project's cashflows and viability, a company's risk profile, its optimal capital structure and debt type, andwhether it is paying out what it can afford to in dividends. These programs are broadly categorized into those that
    1. Estimate risk in an investment and its hurdle rate, as well as assess investment returns (net present value, internal rate of return, accounting return)
    2. Evaluate the right mix of debt and equity in a business and the right type of debt for a firm
    3. Examine how much a firm should return to investors and in what form (dividends versus buybacks)
  2. Valuation Inputs Spreadsheets: In this section, you will find spreadsheets that allow you to
    1. Estimate the right discount rate to use for your firm, starting with the risk premium in your cost of equity and concluding with the cost of capital for your firm.
    2. Convert R&D and operating leases into capitalized assets
    3. Estimate the right capital expenditures and diagnose the terminal value assumptions to see if they are reasonable.
  3. Valuation Model Reconciliation: In this section, you will find spreadsheets that reconcile different DCF approaches - FCFE versus Dividend Discount Model, FCFE versus FCFF model, EVA versus Cost of capital and Net Debt versus Gross Debt Approaches.
  4. Big-picture valuation spreadsheets: If you are looking for one spreadsheet to help you in valuing a company, I would recommend one of these 'ginzu' spreadsheets. While they require a large number of inputs, they are flexible enough to allow you to value just about any company. You do have to decide whether you want to use a dividend, FCFE or FCFF model spreadsheet. If you have no idea which one will work for you, I would suggest that you try the "right model" spreadsheet first.
  5. Focused valuation spreadsheets: If you have a clear choice in terms of models - stable growth dividend discount, 2-stage FCFE etc. - you can download a spreadsheet for the specific model in this section.
  6. Valuation of specific types of companies: Valuation is all about exceptions, and these spreadsheets are designed to help value specific types of companies including:
    1. Financial Service firms: While dividend discount models tend to be the weapon of choice for many, you will find an excess equity return model here.
    2. Troubled firms: You will find an earnings normalizer spreadsheet, a generic valuation model for valuing a firm as a going concern and a spreadsheet that allows you to estimate the probability that a troubled firm will not survive.
    3. Private companies: You will find spreadsheets for adjusting discount rates and estimating illiquidity discounts for private companies.
    4. Young and high-growth firms: You will find a revenue growth estimator as well as a generic valuation model for high growth firms in this section.
  7. Multiples: You can estimate equity as well as firm value multiples, based upon fundamentals.
  8. Valuation in Acquisitions: You can value synergy in an acquiisition and analyze a leveraged buyout.
  9. Valuation of other assets: In this section, you will find a model for valuing income-generating real estate.
  10. Value Enhancement Spreadsheets: In this section, you will find a spreadsheet that reconciles EVA and DCF valuation, a model for estimating CFROI and a DCF version of a value enhancement spreadsheet.
  11. Basic option pricing models: In this seciton, you will find Black-Scholes models for valuing short term options, long term options and options that result in dilution of stock (such as warrants). In addition, you will find spreadsheets that convert Black-Scholes inputs into Binomial model inputs and use the binomial model to value options.
  12. Real option models in corporate finance: In this section, you will find three basic real option models - the option to delay, the option to expand and the option to abandon. In addition, the value of financial flexibility is considered as an option.
  13. Real option models in valuation: In this section, you will find models to value both a patent (and a firm owning a patent) as an option, natural resource firms and equity in deeply troubled firms.

These spreadsheet programs are in Excel and are not copy protected. Download them and feel free to modify them to your own specifications. I do have video guides available for some of the most accessed spreadsheets. I hope they are useful.

One more point. I am not an expert on Microsoft Excel and am frankly mystified by some of the quirky differences between the Mac version (which I use) and the PC version (which you probably have). If you want to refine your spreadsheet skills, you can of course by a book on Excel. However, a reader of this website, Alex Palfi of Tykoh Training, has been kind enough to offer this guide to using and building spreadsheets. Please feel free to download it and use it and to then convey your appreciation to him.

 
Program
Video guide
Description
Corporate Finance
  This spreadsheet allows you to do a basic capital budgeting analysis for a project, and compute NPV, IRR and ROI.
  This spreadsheet allows you to input past returns on a stock and a market index to analyse its price performance (Jensen's Alpha), its sensitivity to market movements (Beta) and the proportion of its risk that can be attributed to the market.
Regression Analyzer Webcast This spreadsheet allows you to check your computations of Jensen's alpha, range on beta and expected return, given the output from a return regression (risk.xls above).
  This spreadsheet allows you to enter the current beta, tax rate and the debt equity ratio for your stock, and obtain a table of betas at different debt ratios.
Convert operating leases to debt Webcast This spreadsheet allows you to convert lease commitments to debt.
  This spreadsheet allows you to estimate a rating and a cost of debt for your company from the firm's interext coverage ratio.
  This model allows you to estimate an "optimal" Capital Structure for a company using the Adjusted Present Value Approach.

 

This model allows you to estimate an "optimal" Capital structure for a company using the cost of capital approach. An option in the model also allows you to build in indirect bankruptcy cost by letting your operating income vary with your bond rating.
Calculate accounting returns (ROE, ROIC) Webcast The return on invested capital and return on equity are accounting measures but useful measures, nevertheless, of the quality of existing projects.
  This model allows you to estimate the duration of a firm's assets and its sensitivity to other macro economic variables. It may be useful in the design of debt.
Estimate potential dividends & compare to actual dividends   This model compares the dividends paid to what a firm could have paid, by estimating the free cash flow to equity (the cash flow left over after net debt payments, net capital expenditures and working capital investments.
  This model allows you to assess how a buyback will affect earnings per share and make judgments on its consequences for overall value and value per share.
Corporate finance & Valuation:
Inputs
  This file describes the programs in this section and provides some insights into their usage.
impliedROC&ROE.xls   This spreadsheet allows you to compute the ROC or ROE implied in your terminal value calculation.
wacccalc.xls   This spreadsheet allows you to estimate the cost of capital for your firm.
  This model summarizes the three approaches that can be used to estimate the net capital expenditures for a firm, when it reaches stable growth.
Webcast This model converts operating lease expenses into financing expenses and restates operating income and debt outstanding.
Webcast This model converts R& D expenses from operating to capital expenses, estimates a value for the research asset and restates operating income.
  This spreadsheet calculates the implied risk premium in a market. This can be used in discounted cashflow valuation to do market neutral valuation.
Valuation Model Reconciliation fcfevsddm.xls   This spreadsheet allows you to reconcile the differences between the FCFE and the dividend discount models for estimating equity value.
fcffvsfcfe.xls   This spreadsheet allows you to reconcile the differences between the FCFF and the FCFE approaches to valuation.
fcffeva.xls   This spreadsheet reconciles a cost of capital DCF valuation with an EVA valuation of the same company
GrossvsNet.xls   This spreadsheet allows you to reconcile the differences between the Gross debt and Net debt approaches to valuation.
All-in-one Valuation Models   This model provides a rough guide to which discounted cash flow model may be best suited to your firm.
  This spreadsheet can be used to value tough-to-value firms, with negative earnings, high growth in revenues and few comparables. If you have a dot.com firm, this is your best choice.
  A complete dividend discount model that can do stable growth, 2-stage or 3-stage valuation. This is your best choice if you are analyzing financial service firms.
fcfeginzu.xls   A complete FCFE valuation model that allows you to capital R&D and deal with options in the context of a valuation model.
growthbreakdown.xls   A model to value the premium you should pay for growth in either an intrinsic valuation or a relative valuation.
fcffsimpleginzu.xls   A complete FCFF model that allows for changing margins and has default assumptions built in (to protect you from inconsistent assumptions). If you want a quick, all-in-one model to value a company with relatively few inputs, try this.

Video

Presentation

This model tries to do it all, with all of the associated risks and rewards. I hate having to work with a dozen spreadsheets to value a firm, and I have tried to put them all into one spreadsheet - a ratings estimator, an earnings normalizer, an R&D converter, an operating lease converter, a bottom-up beta estimator and industry averages. Try it out and make your own additions.
fcffginzulambda.xls   This model is very similar to the fcffginzu model, but it allows the user to enter a measure of company exposure to country risk (that is different from beta).
Loose Ends in Valuation   This model analyzes the value of control in a firm.
  This model estimates the value of synergy in a merger.
  This spreadsheet provides different ways of estimating the value of a brand name, although each comes with some baggage.
  This spreadsheet allows you to measure the complexity in a company and give it a score.
employeeoption.xls   This spreadsheet allows you to value employee options and incorporate them into value.
GrossvsNet.xls   This spreadsheet allows you to understand why the gross and net debt approaches give you different estimates of value for a firm.
liqdisc.xls   Estimates the illiquidity discount that should be applied to a private firm as a function of the firm's size and financial health. Uses both restricted stock approach and bid-ask spread regression.
  This spreadsheet allows you to estimate the probability of distress from the bond price of a company.
Focused Valuation Models   Stable growth, dividend discount model; best suited for firms growing at the same rate as the economy and paying residual cash as dividends.
Two-stage DDM; best suited for firms paying residual cash in dividends while having moderate growth.
Three-stage DDM; best suited for firms paying residual cash in dividends, while having high growth.
  Stable growth, FCFE discount model; best suited for firms in stable leverage and growing at the same rate as the economy.
Two-stage FCFE discount model; best suited for firms with stable leverage and having moderate growth.
Three-stage FCFE discount model; best suited for firms with stable leverage and having high growth.
  Stable growth FCFF discount model; best suited for firms growing at the same rate as the economy.
Two-stage FCFF discount model; best suited for firms with shifting leverage and growing at a moderate rate.
Three-stage FCFF discount model; best suited for firms with shifting leverage and high growth.
  Three-stage FCFF valuation model, also presented in terms of projected EVA.
  A generalised FCFF model, where the operating margins are allowed to change each year; best suited for firms in transition.
Financial Service firms eqexret.xls   Estimates the value of equity in a bank by discounting expected excess returns to equity investors over time and adding them to book value of equity.
Troubled firms normearn.xls   Normalizes the earnings for a troubled firm, uising historical or industry averages.
distress.xls   Estimates the likelihood that a troubled firm will not survive, based upon bond ratings as well as bond prices.
fcffneg.xls   Generalized FCFF model that allows you to value negative earnings firms as going concerns.
Private firms pvtdiscrate.xls   Adjusts the discount rate (cost of equity) for a private firm to reflect the lack of diversification on the part of the owner (or potential buyer)
minoritydiscount.xls   Estimates the discount for a minority stake in a private business, based on the value of control.
liqdisc.xls   Estimates the illiquidity discount that should be applied to a private firm as a function of the firm's size and financial health. Uses both restricted stock approach and bid-ask spread regression.
High Growth Firms revgrowth.xls   Estimates compounded revenue growth rate for a firm, based upon market share and market size assumptions.
higrowth.xls   This spreadsheet can be used to value tough-to-value firms, with negative earnings, high growth in revenues and few comparables. If you have a young or start-up firm, this is your best choice.
Multiples   This is a model that uses a two-stage dividend discount model to estimate the appropriate equity multiples for your firm. It will give you identical answers (in terms of value) as the 2-stage DDM model.
  This model uses a 2-stage FCFF model to estimate the appropriate firm value multiples for your firm. It will give you identical answers (in terms of value) as the 2-stage FCFF model.
Acquisitions   This model analyzes the value of equity and the firm in a leveraged buyout.
  This model analyzes the value of control in a firm.
  This model estimates the value of synergy in a merger.
Other Assets reval.xls   This spreadsheet allows you to value an income-generating property as well as just the equity stake in the property.
Value Enhancement valenh.xls   This spreadsheet allows you to make a quick (and dirty) estimate of the effect of restructuring a firm in a discounted cashflow framework.
fcffeva.xls   This spreadsheet shows the equivalence of the DCF and EVA approaches to valuation.
  This spreadsheet allows you to estimate the current CFROI for a firm.
Basic Option Pricing Models bstobin.xls   This spreadsheet converts the standard deviation input in the Black-Scholes model to up and down movemenents in the binomial tree.
  This is a dividend-adjusted model for valuing short-term options. It considers the present value of expected dividends during the option life.
  Tnis is a dividend-adjusted model for valuing long term options. It considers the expected dividend yield on the underlying asset.
  This is a model for valuing options that result in dilution of the underlying stock. Consequently, it is useful in valuing warrants and management options.
Real Option Models in Corporate Finance   This model estimates the value of the option to expand in an investment project. Modified, it can also be used to assess the value of strategic options.
  This model estimates the value of the option to delay an investment project.
  This model estimates the value of financial flexibility, i.e, the maintenance of excess debt capacity or back-up financing.
  This model estimates the value of the option to abandon a project or investment.
Real Option Models in Valuation   A model that uses option pricing to value the equity in a firm; best suited for highly levered firms in trouble.
  A model that uses option pricing to value a natural resource company; useful for valuing oil or mining companies.
  A model that uses option pricing to value a product patent or option; useful for valuing the patents that a company might hold.