The SaaS Valuation Financial model is a financial projection model, broken down annually and monthly, with a DCF valuation tailored to SaaS businesses. Included in the template you will find:
• A tab breaking down the monthly projections for the next 5 years
• The Income Statement, Balance Sheet and Cash Flow Statement
• An Assumptions Section specific to SaaS businesses with key drivers for the business
• Supporting Schedules Section for Capital Assets and Debt
• Customer Metrics specific to SaaS businesses
• DCF Valuation
• Sensitivity analysis
The first tab is the Monthly Forecast for the SaaS Valuation. The first set of assumptions is included in the top, which is used for the monthly breakdown of the 5-year projections. These assumptions can be modified and will flow down to through the worksheet as well as the Financial Model worksheet.
Going into the Financial Model Tab first is the Assumptions sections where Assumptions are entered in the cells for the projection periods. All assumptions can be modified to fit specific key drivers of the business to see their impact on the 3 Statement model. All projected years are driven by formulas from the Assumptions section and drive the income statement, balance sheet, and cash flow sections. The Supporting Schedules section is all formulas that are tied to the Assumptions and 3 Statement sections so no editing is necessary. The Customer Metrics section includes metrics specific for SaaS businesses and is driven by the Assumptions section. Next, the DCF Valuation section calculates the Enterprise Value (EV) of the business based on the financial projections. Lastly, the model includes a sensitivity analysis using WACC and the Terminal Unlevered Free Cash Flow Multiple that can be changed in the Assumptions section.
All cells in blue font are input cells where custom information can be entered. All cells in black font are formulas set to streamline the model and all cells in green font represent a link to another worksheet. Sections are grouped to condense the model to view sections individually.