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Learn Forecasting UFCF and Linking Cash Flow to the Balance Sheet | Building a DCF Valuation Model in Excel
Mastering Discounted Cash Flow Analysis with Excel
course content

Course Content

Mastering Discounted Cash Flow Analysis with Excel

Mastering Discounted Cash Flow Analysis with Excel

1. Introduction to Business Valuation
2. Understanding Discounted Cash Flow (DCF) Analysis
3. Cash Flow Forecasting and Discount Rate Fundamentals
4. WACC, Terminal Value & Sensitivity Analysis
5. Building a DCF Valuation Model in Excel
6. Practical DCF Case Study – Company Valuation in Action

book
Forecasting UFCF and Linking Cash Flow to the Balance Sheet

Once historical UFCF is in placeβ€”grounded in real financial resultsβ€”it's time to project that cash flow into the future. This transition is the heart of the DCF process. After all, valuation isn't about the pastβ€”it's about the cash a company will generate going forward.

The goal in this step is to extend the UFCF line from the last actual year (2023) into the forecast horizon (2024–2028). This isn't just a copy-paste jobβ€”it's a deliberate projection using assumptions about:

  • Revenue growth and margin trends;

  • Investment needs (CapEx);

  • Working capital behavior;

  • Cost structure changes.

A good model balances efficiency and accuracy. That's why building formulas that can be copied horizontally across the forecast years is so effective. But structure matters. If multiple tabs use the same column headers (e.g., column F as a header), drag-and-fill techniques can breakβ€”leading to incorrect references.

To avoid this, always double-check:

  • That your references are dynamic and clearly mapped;

  • That any helper columns used for actuals don't interfere with forecast calculations;

  • That each forecast year reflects your strategic narrativeβ€”not just mechanical extension of the past.

Forecasting cash flows is both art and science. Historical data grounds you in what's realistic; assumptions let you explore what's possible.

This step transforms your model from a record of past activity into a forward-looking decision-making toolβ€”and prepares it for discounting and valuation in the final stretch.

Everything was clear?

How can we improve it?

Thanks for your feedback!

SectionΒ 5. ChapterΒ 9

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course content

Course Content

Mastering Discounted Cash Flow Analysis with Excel

Mastering Discounted Cash Flow Analysis with Excel

1. Introduction to Business Valuation
2. Understanding Discounted Cash Flow (DCF) Analysis
3. Cash Flow Forecasting and Discount Rate Fundamentals
4. WACC, Terminal Value & Sensitivity Analysis
5. Building a DCF Valuation Model in Excel
6. Practical DCF Case Study – Company Valuation in Action

book
Forecasting UFCF and Linking Cash Flow to the Balance Sheet

Once historical UFCF is in placeβ€”grounded in real financial resultsβ€”it's time to project that cash flow into the future. This transition is the heart of the DCF process. After all, valuation isn't about the pastβ€”it's about the cash a company will generate going forward.

The goal in this step is to extend the UFCF line from the last actual year (2023) into the forecast horizon (2024–2028). This isn't just a copy-paste jobβ€”it's a deliberate projection using assumptions about:

  • Revenue growth and margin trends;

  • Investment needs (CapEx);

  • Working capital behavior;

  • Cost structure changes.

A good model balances efficiency and accuracy. That's why building formulas that can be copied horizontally across the forecast years is so effective. But structure matters. If multiple tabs use the same column headers (e.g., column F as a header), drag-and-fill techniques can breakβ€”leading to incorrect references.

To avoid this, always double-check:

  • That your references are dynamic and clearly mapped;

  • That any helper columns used for actuals don't interfere with forecast calculations;

  • That each forecast year reflects your strategic narrativeβ€”not just mechanical extension of the past.

Forecasting cash flows is both art and science. Historical data grounds you in what's realistic; assumptions let you explore what's possible.

This step transforms your model from a record of past activity into a forward-looking decision-making toolβ€”and prepares it for discounting and valuation in the final stretch.

Everything was clear?

How can we improve it?

Thanks for your feedback!

SectionΒ 5. ChapterΒ 9
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