Completing a Single-Tenant DCF with Valcre's Valuation Workbook

This guide will teach you how to use Valcre’s native DCF function within the Valuation Workbook.  These steps set up your Direct Cap and DCF sheets accordingly, allowing you to make adjustments and conclusions. 

  • Please see the linked Help Center articles to learn how to use Valcre with a third-party data provider such as Rockport Val or Argus


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Table of Contents

Video Guide

This video will guide you through the use of this sheet, below you will find the written steps if you prefer to learn that way. 


How-to Guide

Basic steps of completing a Single-Tenant DCF Valuation using Valcre

  • Note: Each high-level step is linked with details on completing it below.
  1. Set up the HOME sheet - with appropriate modules and templates enabled. 
  2. Complete the Rent Roll (RENTROLL) sheet. 
  3. Import Sales data (if applicable) in the SALE1 / SALE2 (if applicable) sheet(s)
  4. Import Rent data in the RENT1 / RENT2 (if applicable) sheet(s) and estimate market rent.
  5. Assign the chart of accounts in the IE_IN sheet.
  6. Pull in expense comps and draw expense item conclusions from the EXPCMP sheet.
  7. Estimate the going-in rate in the OAR sheet. 
  8. The Direct Cap (DIRECTCAP) and DCF (DCF) sheets will update accordingly, allowing you to adjust fields as necessary.

Home Sheet set-up

Step 1: Load your job using the Valcre Ribbon. 

Step 2: Select Property Type, Subtype, Occupancy Status.

Step 3: Select the appropriate Template.

Step 4: Select your Modules.

Pro tip: The Income Approach needs to be enabled at minimum, but at least one approach (income, cost, sales) needs to be enabled, and you can enable as many as applicable.


Step 5: Select Show All within the Module enablement and select Excel for DCF.

Step 6 (if applicable): Enable any other modules required for your valuation.

Step 7: Select Set Up Workbook

Rent Roll (RENTROLL) sheet 

You will set this sheet up to inform the DIRECTCAP and DCF sheets on the revenue to use. 

Step 1: Select RENTROLL from the bottom navigation menu.

Tenancy and Occupant Type will be automatically populated based on what you selected in the set-up on the HOME sheet. These can be adjusted as applicable.

Step 2: Enter your lease parameters to generate a Single-Tenant Lease Abstract.

Step 3: Enter the Tenant Lease data

Pro tip: Be sure to enter the beginning rent date based on the lease in place. The revenue selected for the Direct Cap table or the DCF table will be current and based on the report's dates.


Step 4: Enter your AVG ESC/Yr (Escalation) in the Rent Schedule table.

Learn more about the RENTROLL sheet with our guide on the RENTROLL sheet.  

Sales Comparable SALE1 | SALE2 (if applicable) 

Technically, this sheet is not needed for the DCF. However, if you will be utilizing cap rate sales on the OAR sheet, the only task needed here is to import the sale comparables, as nothing else will have to be completed. This sheet is only completed when and if you require the SCA for valuation. 

  • NOTE: if your report requires both SALE1 and SALE2 for the valuation, and both sets of comparables are applicable as OAR comparables, these sets can be loaded on the OAR sheet. However, if the SCA is not being deployed, you can put all of your OAR comparables in one sale set and load them on SALE1

Step 1: Navigate to the SALE1 sheet using the bottom or left-side navigation menu. 

  • Note: You may need to use the arrows next to the navigation bar at the bottom.

Step 2: Import the Comp Set and Set up your Sales Comparison table.   

Learn more about the SALE1 sheet with our complete SALE1 guide.

Rent Comparables (RENT1) sheet

Step 1: Navigate to the RENT1 sheet using the bottom or left-side navigation menu. 

  • Note: You may need to use the arrows next to the navigation bar at the bottom.

Step 2: Import lease comparables and set up your Lease Comparable Summary Grid.

This allows you to use the conclusion in Single-Tenant Market Rent Conclusion.

Import by Comp Set Name Select the set name from the drop-down. The sets are created in Valcre Online (Link guide)
Comparables Analyzed Select the total number of comparables to remove extra space from your tables and charts. The default and max is 10. 
Adjustments Determine if you are making Qualitative or Quantitative adjustments. This defaults to Qualitative.
Rent Terms Select the applicable rent terms: Annual or Monthly. This defaults to Annually.
Unblended Rents Determine if you are using Unblended Rates. This defaults to No. 
Market Conditions Adj./yr Enter the Market Conditions adjustment rate.
Market Conditions Effective Date This date defaults to the Date of Value listed on the Home sheet and in Valcre Online. 
Standard Adjustment The default is 5%. Manually adjust as applicable. 
Market TI/SF High Enter the TI/SF High. The default is $20.00
Market TI/SF Low Enter the TI/SF Low. The default is $5.00
Market Free Rent (Mos.) High Enter the Market Free Rent High. The default is 3.
Market Free Rent (Mos.) Low Enter the Market Free Rent Low. The default is 0. 
Unknown Data label Adjust what you want to see when a field lacks value, if applicable. The default is “-”; however, some modify this to N/A.
Unknown confirmation Label This label will be applied, if applicable when no data is for the fields in the confirmation table at the bottom of the sheet. The default is confidential. 


Nothing else is needed here for the DCF per se; however, you must complete the adjustment process so that the conclusions will flow to the next table.

Step 3: In the Single-Tenant Market Rent Conclusion table, set your Asking, Rent Type (ensure this is set up correctly because it flows through to direct cap and triggers reimbursement components to add up for income and expenses), and Conclusion

Learn more about the RENT1 sheet with our complete RENT1 guide.   

Revenue & Expenses (IE_IN) sheet

Step 1: Use the navigation menu on the button or left side of the workbook to navigate to the IE_IN (Expenses and Income) sheet

  • Note: You may need to use the arrows next to the navigation bar at the bottom. 

Step 2: Set up your Revenue & Expense Categories table. This is the sheet where you type or select the expense items within the chart of accounts that will be analyzed and then choose YES.

Pro tip: The yellow fields allow you to add any additional chart of accounts not listed in Valcre. Be sure to enable the ones you created by selecting Yes next to them. 


Learn more about the IE_IN sheet with our complete IE_IN guide.  

Revenue & Expense Operating History (IE) sheet

This sheet is set up according to the Revenue & Expense Categories enabled in the IE_IN tab and flows through to the DIRECTCAP  and DCF sheets.

Pro tip: A common issue is not enabling expense items in your chart of accounts on the IE_IN sheet, which would prevent those revenue and expense categories from populating this sheet. 


Learn more about the IE sheet with our complete IE guide.  


Expense Comparables (EXPCMP) sheet 

Step 1: Navigate to the Expense Comparables sheet by selecting EXPCMP from the bottom or left side menu. 

  • Note: You may need to use the arrows next to the navigation bar at the bottom.

Step 2: Load the Expense Comparables and set up your Expense Comparables summary grid.

Learn more about the EXPCMP sheet with our complete EXPCMP guide.  


Expense Conclusions (IE_CONC) sheet

Step 1: Navigate to the Revenue & Expense Conclusions sheet by selecting IE_CONC from the bottom or left-side menu

  • Note: You may need to use the arrows next to the navigation bar at the bottom.. 

Step 2: Manually enter relevant comments for the Reimbursement Revenue Conclusions.

Step 3: Enter your conclusions for each expense category enabled in the IE_IN sheet and determine the reimbursement level. Once the conclusion for the expense item has been made, IF it is reimbursable, you can select which account to reimburse and how much to reimburse.  

  • Note: Remember that the account must be enabled in the IE_IN sheet. 

Once set up, the Low/High figures are auto-calculated.

Learn more about the IE_CONC sheet with our complete IE_CONC guide.  


OAR sheet

Step 1:  Navigate to the OAR sheet by selecting OAR from the bottom menu. 

  • Note: You may need to use the arrows next to the navigation bar at the bottom.

Step 2: If you are using Sales Comparables, determine which sheet you wish to bring in Sales Comparables from Sale1, Sale2, or both

Step 3:  Set up your table by narrowing down the columns to just the analyzed comparables using the Comparables Analyzed drop-down and selecting whether you will be Adjusting your Comparables

Step 4: Complete the National Investor Survey if you are utilizing PwC.

Step 5: Next to Type of Analysis, select which Band of Investment method you will use. You can choose up to three rate development methods.  In the Rates & Growth table, select Get 10-year Treasury, Get SOFR, or both, depending on which you wish to utilize. 

Step 6: Enter your debt parameters in the yellow fields.

The blue dropdowns in these tables contain formulas based on the revenue and NOI conclusions in the direct capitalization and DCF tables. You can select the answer that these formulas provide, or you can type over them. 

  • Note: These dropdown values will change as you complete the Direct Cap and DCF tables. So, it is best to complete the information on the DIRECTCAP and DCF sheets before finalizing your estimates.

Learn more about the OAR sheet with our complete OAR guide.   

Direct Capitalization (DIRCAP) sheet

Step 1: Access the Direct Capitalization sheet by selecting DIRECTCAP from the bottom menu or DIRCAP from the left-side menu. 

  • Note: You may need to use the arrows next to the navigation bar at the bottom.

This sheet will be set up based on the information you entered in previous sheets. 

Step 2: Set up the Direct Capitalization Table if you haven't already done so. 

Pro tip: The Use DCF in the Direct Cap drop-down determines if you will pull rent from the stabilized year in the DCF or the current rent identified in the RENTROLL sheets.  


Step 3: Click to hide unused rows


If No for Ues DCF in Direct Cap

Step 4: Enter Vacancy elements for rental revenue

Step 5: Review / adjust your Capitalization Rate.


If Yes for Use DCF in Direct Cap

It is best to wait for the cap rate conclusion if you use the DCF. Once the DCF is completed, you can revert back to the OAR sheet and observe the implied cap rate. Then proceed back to this sheet and enter your conclusion. Otherwise, nothing is needed here except to proceed to the DCF.


Learn more about the DIRCAP sheet with our complete DIRECTCAP guide.  

DCF sheet

Step 1: Access the DCF sheet by selecting DCF from the bottom or left-side menu. 

  • Note: You may need to use the arrows next to the navigation bar at the bottom.

Step 2: Select the desired holding period. 

  • Note: You may select up to 20 years. 

Step 3: Estimate Prospective upon Completion and Estimate 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 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)

Step 4: 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 5: Set up your Discounted Cash Flow Table and select Click Here to Hide Unused Rows.

Step 6: Now that you know the table is set up, the revenue items here should align with your rent roll conclusions. Additional estimates can be made for revenue and expense growth. You can also edit vacancies and vacancy-related deductions. The yellow fields are for manual entry, allowing you to make applicable adjustments. 

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

Step 7: 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. 


Complete OAR sheet

Step 1: Navigate back to the OAR sheet by selecting OAR from the bottom navigation menu. 

  • Note: You may need to use the arrows next to the navigation bar at the bottom.

Step 2: Adjust conclusions to see if you can support your Cap Rate from the DIRECTCAP sheet. 

  • NOTE: Whenever completing a DCF, the discount and exit rates often imply the cap rate (i.e., the results provide the components needed to build the cap rate), so the formulas in the blue dropdown cells will aid you in making this estimate. 
  • Adust your EYR
  • Adjust your Basic Rate Less: Appreciation
  • Adjust Overall Rate (w/fixed income stream) divide by (1 + (Noi Grwoth% * J) )

Learn more about the OAR sheet with our complete OAR guide


Additional DCF functionality

The DCF is set up to be flexible, allowing you to make edits, accommodate a variety of situations, and suit your needs. Below are two additional sheets that may be useful for your valuation. 

EXTRA sheet - There are times when you need to calculate vacancy and rent loss; you can use the EXTRA sheet to itemize elements needed to calculate rent excesses or deficits, rent loss deductions, property rights adjustment, or other additional charts.

LEASEUP sheet- allows you to calculate any missing rent due to lease-up.  


For additional questions about completing a DCF using Valcre, please contact Valcre Support using Valcre Online or Valcre Mobile

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