Sorry to be posting thrice in a row. But over the weekend, I have, dare I say ‘perfected’ the model (Well, sort of). You won’t be seeing many changes to the model here on out. The key addition this time is the ‘Capital Conversion’ section. It allows for wrongly attributed R&D Expense and Operating Lease to be capitalized. It also allows for the calculation of Market Value of Debt. These were the key missing pieces from Prof. Aswath Damodaran’s original model and I’ve included them.
Besides that, I finally got around to making a step-by-step to-do list on how to use the model to Value a company. If you plan on downloading and using the model, please do not forget to read this: