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DCF: Your MD challenges your valuation
You present a DCF to your Managing Director. They will test every assumption. Will you survive the 7 questions?
Corporate FinanceAdvancedCalculation
Wednesday, investment committee. You present your DCF valuation of TechFlow, a B2B SaaS company.
Your model:
- Current revenue: €100M, projected growth: 15%/year over 5 years
- EBITDA margin: 25% (stable)
- WACC: 9%
- Terminal growth (g): 3%
- Capex = 5% of revenue, Tax = 25%
- Net debt: €20M
Your MD starts: "Show me you understand your own model."
Given
| Current revenue | 100 M€ |
| Revenue growth | 15 %/an |
| EBITDA margin | 25 % |
| WACC | 9 % |
| Terminal growth (g) | 3 % |
| Capex (% rev) | 5 % |
| Tax rate | 25 % |
| Net debt | 20 M€ |
Question 1/7
"What's your Year 5 revenue?" — Calculate the projected revenue after 5 years at 15% growth.
Your answerEnter a number in M€
M€
0/7
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