Discounted cashflow

Discounted cashflow

Based on the specified cashflows statement template, cashflow annual budget, B/S template, and B/S budget, the discounted cashflow is generated and outputted.
The outputs by "Company Unit" without specifying items, or the individual output for each "Department" as well as each "Project code 1, 2" or "Accounting analysis code 1, 2" are also available.
The index to get the values, such as WACC (Weighted Average Cost of Capital), must be registered in [Register analysis index for cashflow] in advance. And, in [Register cashflows statement template], "FCF" on the single specified row has to be marked.
→ To Operation Procedure

Screen Transition

[Cashflow management module]
  ↓
[Cashflow management]
  ↓
[Discounted cashflow]
  ↓
[Discounted cashflow] screen

Item Setup

[Required item]

Accounting year
Specify a range of accounting year. It initially indicates "current fiscal year - current fiscal year."
If there are no data for the specified year in [Register analysis index for cashflow], an error message will appear and the output will not be generated.
Output FCF achievements
Mark here to output the actual values in the row with "FCF" marked in [Register cashflows statement template]. The FCF achieced value is outputted according to the formula attached to the row with "FCF" marked in the cashflows statement template.
Output
Select either "Company unit" or "Indiv item compare." By default, "Company unit" is selected.
If you select "Indiv item compare," a text box will appear on the lower potion of the screen, then you can enter a range of output items.
Item
When "Department" has been selected, even if you select summary department, the actual departments will be arranged side by side in the output. Because, in [Register analysis index for cashflow], it is not allowed to register the index values by unit of summary department. A range of summary department can not be set.
C/F Template code, C/F budget code
Select a cashflows statement template from the registered templates in [Financial statements module], and based on the selected template, select a cash flow budget code (annual budget) from the registered codes in [Planning control module].
The budget codes of "Term", "Quarter", and "Half-year" are not available.
B/S template code, B/S budget code
Select a B/S template in [Financial statements module], and based on the selected template, select a B/S bdget code (annual budget) from the registered codes in [Planning control module]. These values are used to summarize A/Cs, such as "Interest-bearing debts" or "Capital," because the budgets of these A/Cs are required for WACC calculation.
The budget codes of "Term," "Quarter," and "Half-year" are not available.
Macro file, Macro
If you want to apply Microsoft Excel Macros to the output, enter the names of Macrofile and Macro.

[Buttons]

Refer
Start
Clear
Exit

Calculation methods of WACC, Cost factor, DCF row

In the discounted cashflow, FCF achieved, WACC, cost factor, and DCF are outputted below the cashflow annual budget.
FCF achieved is calculated according to the formula attached to the row with "FCF" marked in the cashflows statement template.
WACC, cost factor, and DCF are calculated respectively according to the following formulas.

Output item	Formula	Comment
WACC	WACC= I × (1 - T) × D/(D + E) + (Rf+b × (Rm-Rf)) × E/(D + E)	In a unit of company or the item specified, it is calculated referring to the values for corresponding year in [Register analysis index for cashflow]. 1 digit + 6 digits for the fractional portion. Rounded off at the seventh decimal place. The value of WACC varies by year.
		I: Interest rate		It refers the values registered in a unit of company or item.
		T: Effective tariff		It refers the values registered in a unit of company.
		RF: Risk free rate
		Rm: Expected earning rate
		ß: ß value
		D: Interest-bearing debts		Based on the registered B/S annual budget data specified in the screen, it summarizes the A/C rows with "Interest-bearing debts" marked.
		E: Capital		Based on the registered B/S annual budget data specified in the screen, it summarizes the A/C rows with "Capital" in "A/C type" set in [Register A/C and Sub A/C].
Cost factor	1/(1 + WACC) ^ (Lapsed Years)	1 digit + 6 digits for the fractional portion. Rounded off at the seventh decimal place. It is calculated with considering "Start Year" of the accounting year range, which was entered in the screen, as the first year. Examples of calculations using the following values for accounting year and WACC are shown.
		Accounting year	LapsedYears	WACC value	Cost factor
		2002	1st Year	0.12	1/(1 + 0.12) ^ 1=1/1.12= 0.892857
		2003	2nd Year	0.1	1/(1 + 0.1) ^ 2=1/1.21= 0.826446
		2004	3rd Year	0.11	1/(1+0.11)^3=1/1.367631= 0.731191
DCF	FCF (Budget data) × Current cost factor	13 digits + 2 digits for the fractional portion. Rounded off at the third decimal place. Note that this FCF is not the actual value but the budget value.

Back Top