QUANTGPT · Lesson 7: Team and the model
The team board: one board per subscription
YOUOWNER
SEAT 2INVITED BY EMAIL
SEAT 3INVITED BY EMAIL
NOTES
RUNNING
CONFIRMED
EMPTY UNTIL A FINDING EARNS IT
UPLOADED DATA · CSV, TSV, TXT, MD, JSON · YOUR TEAM ONLY
The model: what the price assumesSchematic, no figures
Years 1 to 5: your growthYears 6 to 10: fade to terminalTerminal value
EVERY YEAR'S CASH, DISCOUNTEDADD ▸
LESS NET DEBTDIVIDE BY SHARES ▸
VALUE PER SHARE
Run it backwards, then the gridSchematic, no figures
TODAY'S PRICESOLVE FOR GROWTH ▸
THE GROWTH THE PRICE IMPLIES
LOWERTERMINAL GROWTH, ACROSSHIGHER
LOWERDISCOUNT
RATE,
DOWNHIGHER
RATE,
DOWNHIGHER
BRIGHTER = MORE VALUE PER SHARE. SHADING SHOWS DIRECTION ONLY; THE REAL GRID PRINTS A VALUE IN EVERY CELL.
The Excel model: live formulasThe formulas the file writes
InputsDCFHistorySensitivity
| A | B | C | D | E | |
|---|---|---|---|---|---|
| 1 | Year | Growth | Free cash flow | Discount factor | Present value |
| 2 | 1 | =IF(A2<=Inputs!$B$8,Inputs!$B$5,Inputs!$B$5+(Inputs!$B$6-Inputs!$B$5)*(A2-Inputs!$B$8)/(Inputs!$B$9-Inputs!$B$8)) | =Inputs!$B$4*(1+B2) | =1/(1+Inputs!$B$7)^A2 | =C2*D2 |
| 3 | 2 | =IF(A3<=Inputs!$B$8,Inputs!$B$5,Inputs!$B$5+(Inputs!$B$6-Inputs!$B$5)*(A3-Inputs!$B$8)/(Inputs!$B$9-Inputs!$B$8)) | =C2*(1+B3) | =1/(1+Inputs!$B$7)^A3 | =C3*D3 |
| ··· | |||||
| 14 | Terminal value at year N | =C11*(1+Inputs!$B$6)/(Inputs!$B$7-Inputs!$B$6) | |||
| 15 | PV of terminal value | =B14/(1+Inputs!$B$7)^Inputs!$B$9 | |||
| 18 | Value per share | =IF(Inputs!$B$11>0,B17/Inputs!$B$11,"") | |||
The model scenes are schematic, no figures · Not investment advice