Methodology · III

Discounted Cash Flow

A 10-year unlevered free cash flow forecast, discounted at WACC. Defaults follow the Rothschild standard model — adjust any assumption and re-run.

The subject

Ticker

Sector (optional)

Geography (optional)

As-of date

II.

Forecast

Forecast years

Standard = 10. Allowed range 3–15.

Year 1 revenue growth (%)

Leave blank to use FMP analyst estimate.

Long-run growth anchor (%)

Used in fade and as TV g cap.

Long-run EBITA margin (%)

Leave blank to use current EBIT margin.

Long-run Capex / D&A

Long-run ΔNWC / ΔRev (%)

III.

WACC inputs

Risk-free rate override (%)

Leave blank to use FRED 10y Treasury.

Equity market risk premium (%)

Country credit risk premium (%)

Beta override

Leave blank to use FMP profile beta.

Apply Blume adjustment

Target D / (D+E) (%)

Leave blank to use current market-value ratio.

Capital-structure source

Cash tax rate (%)

Leave blank to use country statutory rate.

Discount convention

IV.

Terminal value

Method

Terminal growth g (%)

Default = min(long-run anchor, Rf).

RONIC (%)

Value-driver only. Default ≈ WACC + 1pp.

Exit EV/EBITDA

Exit-multiple method only.

EV → equity bridge (optional)

Pension deficit, net of tax (£m)

PV operating leases (£m)

Minority interest, market value (£m)

JV / associates value (£m)

JV consolidation policy