Before diving into valuation calculations, it's essential to understand the layout of the financial model. Just like a good map helps you navigate a new city, a well-structured model helps you track assumptions, link calculations, and ultimately reach a reliable valuation.

The financial model you're working with is organized into clear, labeled tabs that mirror the logical flow of a DCF analysis. This structure isn't just helpful—it's crucial. Without it, even the best data can become unmanageable or prone to error.

Here's how it flows conceptually:

• Index Tab: this functions like a table of contents, outlining the sections and their sequence. It's your anchor for quick navigation;

• Input Tabs: these contain raw financial data—both historical and projected. You'll find income statements, balance sheets, and free cash flow assumptions here;

• Assumptions & Drivers: this is where business logic lives. Growth rates, WACC, tax rates, and terminal value inputs are all housed in these tabs;

• Calculations: behind the scenes, this is where values are derived—UFCF, present values, and ultimately the enterprise value;

• Output or Summary: the final result appears here, usually with sensitivity tables, charts, and key valuation metrics. It's the polished view used for decision-making.

This modular layout improves transparency and auditability. Analysts, investors, or buyers can trace any number back to its source. It also allows for flexibility—adjusting assumptions without overwriting outputs or historical data.

Understanding the structure of your model is step one to mastering it. With this blueprint in hand, you're now ready to begin the actual valuation work.