Goal seek / DCF(as requested)

DCF Summary

One-page executive summary of every element of the discounted cash flow valuation

Scenario

Enterprise Value (Perp.)

$52,638,107

Enterprise Value (Exit)

$81,091,171

Equity Value

$82,940,662

WACC

18.0%

1. What a DCF is

A Discounted Cash Flow (DCF) values a business by summing the present value of every future cash flow it will produce for all capital providers. This model uses the unlevered DCF: cash flows are computed before interest (so they represent value to both equity and debt holders) and discounted at the Weighted Average Cost of Capital (WACC). The result is Enterprise Value; add cash and subtract debt to get Equity Value.

2. Unlevered Free Cash Flow (FCFF)

FCFF = EBIT × (1 − tax) + D&A − Capex − ΔNWC

Starts from operating profit taxed as if the business had no debt (NOPAT). Adds back non-cash D&A, then subtracts capex and the year-over-year change in net working capital. The model produces five explicit forecast years of FCFF.

	FY2026	FY2027	FY2028	FY2029	FY2030
FCFF	$4,346,917	$3,848,718	$5,782,316	$8,082,364	$10,724,740
EBITDA	$3,762,695	$5,467,437	$7,603,973	$10,427,957	$13,873,694

3. Discount period & discount factor

DF_k = 1 / (1 + WACC)^period_k (period_k = k − 0.5 with mid-year convention)

Mid-year discounting assumes cash flow arrives in the middle of each fiscal year, which is more accurate than end-of-year for operating businesses. With WACC = 18.0%, the Year-5 factor is 0.4748.

4. Present value of the explicit forecast

PV(FCFF₁…₅) = Σ FCFF_k × DF_k

Each year's FCFF multiplied by its discount factor. Sum across the five explicit years:

Sum of PV of explicit FCFF$20,447,978

5. Terminal value — perpetuity growth (primary)

TV = FCFF₅ × (1 + g) / (WACC − g)

Captures the value of every cash flow beyond Year 5, assuming they grow at perpetual rate g = 3.0%. Because it capitalizes an infinite stream, it is highly sensitive to the WACC-minus-g spread (currently 15.0%).

Y5 FCFF × (1 + g)$11,046,483
÷ (WACC − g)15.0%
= Terminal Value (Y5)$73,643,218
× Discount Factor= $32,190,129 PV

6. Terminal value — exit multiple (cross-check)

TV(exit) = EBITDA₅ × Exit Multiple

Assumes a sale at the end of Year 5 at 10.0x EBITDA — anchored to comparable sports-data / mar-tech transactions. The gap between exit and perpetuity EV is a sanity check: currently $28,453,064.

7. Enterprise Value & Equity bridge

PV of explicit FCFF$20,447,978
+ PV of Terminal (perpetuity)$32,190,129
= Enterprise Value$52,638,107
+ Cash (Y5)$30,302,555
− Debt-
= Equity Value$82,940,662

8. WACC — the discount rate build

WACC = (E/V) × Ke + (D/V) × Kd × (1 − t)

Risk-Free (Rf)4.3%

Beta (β)1.00

ERP5.5%

Size Premium5.0%

Company-Specific RP5.3%

Cost of Equity (Ke)20.0%

Pre-Tax Kd10.0%

Tax Rate25.0%

After-Tax Kd7.5%

Equity Weight95.0%

Debt Weight5.0%

WACC18.0%

9. Sanity checks

Terminal share of EV: 61.2% — within an acceptable range for a growth-stage business.
WACC − g spread: 15.0% — should stay comfortably positive; a spread under 3% amplifies valuation noise.
Perpetuity vs. Exit delta: $28,453,064 — large gaps suggest one method's assumption is out of line with the other.
g vs. long-run GDP: g = 3.0%. Values above ~3% imply the business grows faster than the whole economy forever.

Hover the info icons throughout this page (and across the model) for term-level definitions. Click any KPI on the DCF page to open the drilldown drawer with formula, upstream drivers, and reverse-calculation (goal seek).