http://intelligentinvesting.googlepages.com/DCF.xls
This is a DCF I just ran across that a blogger created off of Mohnish Pabrai's book Mosaic. So simple. It is amazing how the more simple something is often times the more useful. If it is selling as a $.50 dollar off of a reasonable fcf analysis you bet you probably got some decent margin of safety and you should take a close look.
So the art is calculating what the free cash flow is in year one. What is the true free cash flow? Is there any reason why this year was different from a normal year either higher or lower? How does free cash flow grow with revenue? Is this sustainable? Boom you have a decent guess. Not that complicated where you need pages of pages to create your model that gives you the false sense of security because somehow it is detailed.
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