We will now perform the DCF valuation using the terminal EBITDA multiple method and calculate the implied perpetuity growth rate. To make our model more useful, we will perform these calculations for a range of terminal EBITDA multiples and WACC values.
It might be easier to set up the sensitivity tables using Excel's built-in Tables (Alt>d>t), rather than use the complex equations we used here. However, by not using Excel Tables we avoid the possibility that these sensitivities will not update automatically when we change inputs to the DCF analysis, since Tables are usually set not to recalculate automatically. You can check whether Excel will recalculate Tables automatically by opening the Options dialog box (Alt>t>o) and navigating to the Calculation tab.comments powered by Disqus