Valuation Workbook: DCF sheet

Valcre supports Discounted Cash Flow (DCF) analysis through integrations with Argus and Rockport Val, giving you the flexibility to leverage industry-standard tools directly alongside your Valcre workflow. These integrations allow you to import key datapoints from the DCF model into the Valuation Workbook

Valcre also includes a built-in DCF sheet, which is designed for simple scenarios, such as single-tenant properties or basic income projections. While this internal tool is convenient and easy to use, it has limited functionality compared to specialized software and is best used for straightforward cases.

Prerequisites

Valcre Subscription: Professional or Enterprise
Workbook Version: 1.6.1.0 or higher (for full feature availability, including color formatting for negative numbers)

Accessing the DCF Sheet

Navigate to the DCF sheet using the bottom or left-hand navigation bar in the workbook.

🛈 Note: Use the small arrows at the bottom of Excel to scroll if the DCF tab isn't immediately visible.

DCF Table

Step 1: Set up your DCF table

Desired Holding Period - Select up to 20 years
Prospective upon Completion and Prospective upon Stabilization years. If you aren’t stabilized immediately, this tells the direct cap what year to pull revenue from. Example: If you said that upon stabilization was year 2, in the direct cap, you would want to change the USE DCF to yes (the option will update to year 2)
Use Expanded DCF Presentation for DCF1: Opens up a NEW (with workbook version 1.6.1.0 or higher) additional cash flow option that will allow you to take advantage of more Argus-centric presentations. If you are not using Argus, select No. When you select Click Here to Hide Unused Rows, these additional rows will be removed.	The top half of the DCF table is the more Argus-centric table. The Direct Cap-centric portion of the DCF table follows immediately after.
Negative Number Formats: Determine the color you would like negative numbers to be displayed as (New for workbook versions 1.6.1.0 or higher)

Now that the table is set up, the revenue items should align with your rent roll conclusions.

Pro tip: Select Click Here to Hide Unused Rows for a cleaner view of your DCF table.

Step 2: Review As-Is, Prospective Upon Completion, and Prospective Upon Stabilization Comments.

🛈 Note: These are set to auto-populate based on your entries in the above steps.

Step 3: Finalize the DCF table

Make any necessary additional estimates for revenue and expense growth, edit vacancies and vacancy-related deductions in the yellow fields. You can also edit vacancies and vacancy-related deductions.

🛈 Note: Rent Growth and Reimbursement Income Growth lines are not linked.

Pro tip: With workbook version 1.6.1.0 we have added an additional cash flow, allowing you to take advantage of a more Argus-centric presentation.

The Direct Cap- centric presentation starts immediately following it. (Approx. line 170)

Present Value Assumptions Table

Step 1: Set up the Present Value Assumptions table

The Present Value of Cash Flow table will populate based on your previous selections for stabilization year and year of completion.

Step 2: (optional) Additional Value Conclusion

If you would like to add an additional value conclusion, select yes in the drop-down. Select the value indicated and add your conclusion. Repeat as needed for any additional value conclusions.