Discounted cash flow valuation model (DCF)
 
This valuation model is designed to be:
- only in one sheet so formulas can be easily audited and understood
- full DCF including two options:
1. free cash flow to firm (debt free cash flow) discounted at WACC
2. free cash flow to equity discounted at cost of equity,
so that it is easily understood what is the difference between the two, and how to structure a DCF so that both are aligned
- full development of main financial statements balance sheet, income statement, cash flow statement
 
It is useful both for both uses, valuation in practice and learning or remembering how discounted cash flow (DCF) works.
 
Designer uses it frequently in practice for both uses.