How to Build a DCF Valuation Model in Google Sheets (Free Template Inside)

How to Build a DCF Valuation Model in Google Sheets

Discounted Cash Flow (DCF) analysis is the gold standard for valuing stocks. But most people struggle because:

1. They build models from scratch every time (waste of hours)
2. They make formula errors that change results dramatically
3. They don't know how to calculate WACC properly
4. They forget to add sensitivity analysis

I created a free DCF calculator template that solves all these problems. Here's how it works:

## Step 1: The Input Sheet
Enter 12 key parameters: current stock price, shares outstanding, free cash flow, growth rates, WACC components, and balance sheet data. The template handles the math.

## Step 2: Projected Cash Flows
The model projects 5 years of free cash flows based on your growth assumptions, then discounts them back to present value.

## Step 3: Terminal Value
No DCF is complete without terminal value. This template uses the Gordon Growth Model to value the company beyond 5 years.

## Step 4: Fair Value & Margin of Safety
The output shows intrinsic value per share, compares it to current price, and tells you whether the stock is undervalued or overvalued with a clear buy/hold/sell signal.

## Step 5: Sensitivity Analysis
A color-coded table shows how fair value changes with different growth and discount rate assumptions. This is crucial for understanding the range of possible outcomes.

## Why Use a Pre-Built Template?
- **Save 3+ hours** building from scratch
- **Eliminate formula errors** with tested calculations
- **Compare multiple stocks** consistently
- **Share with your investment group** in seconds

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**👉 Grab the fully-editable Google Sheets template here:** [DCF Valuation Calculator](https://microtoolsb2b.gumroad.com/l/dcf-calculator) ($29)

*Includes 3 pre-built examples (Apple, Microsoft, Costco) plus full instructions. Works in Excel too.*

## Tags
#googlesheets #excel #finance #investing #dcf #valuation