Financial model screenshot for short-term rental analysis and valuation.

5-year Financial Projections, Budget, Business Valuation, Cash Flow Analysis, Cash Flow Projections, DCF Model, Discount Rate, Excel, Financial Analysis, Financial Model, Financial Modeling, Financial Planning, Financial Ratios, Financial Statements, Forecast, Forecasting, Income Statement, IRR (Internal Rate of Return), NPV (Net Present Value), Payback Period, Rental Income, Return on Invested Capital (ROIC), Return on Investment (ROI), Startup Financial Models, Three Statement Model | Three Financial Statements, Valuation, WACC (Weighted Average Cost of Capital)

Model Description & Objectives

Overview & Main Objective : A fully comprehensive Financial Forecasting Model, suitable for a Short Term Rental Business. The main objective is to develop a 5 year Financial Forecast for the Rental Business, by using a 3-Statement Model (Income Statement, Balance Sheet, Cash Flow). Moreover, to provide a Capital Budgeting Valuation for the Short Term Rental Project by using a Discounted Cash Flow Model.

The model assumes the initial purchase of 5 rental properties, and the project is valuated over a period of 5 years. For the purposes of the Capital Budgeting Valuation exercise, it is assumed that the properties are sold at the end of the 5 year period.

EBITDA Calculation : A 5 year Business Operations Forecast is performed, taking into account all the relevant revenues and costs for each of the 5 Rental Properties, in order to end up with the EBITDA for the Short Term Rental Business.

Financial Forecast : A 5 year Financial Forecast is performed for the 3 main Financial Statements: Income Statement, Balance Sheet & Cash Flow Statement. Moreover, one can see the main Financial Ratios in the relevant worksheet.

Project Valuation : A Capital Budgeting Project Valuation is performed in the relevant worksheet using a Discounted Cash Flow model, in order to decide whether it is financially beneficial to undertake the project. A set of different criteria are examined: NPV, IRR, Profitability Index, Payback Period. The required Return on Equity is calculated through the Capital Asset Pricing Model (CAPM). The WACC of the firm is then calculated taking into account also the cost of Dept.

Model Contents : The model contains 3 types of worksheets (w/s). Input w/s; Reporting w/s (where no input is required); and there is also a supporting w/s containing the abbreviations.

Input Worksheets (even a small input may be required) :

Model Settings : Here you may fill in the required info in the “Model Setup” section.
EBITDA Calculation w/s: Here, a Business Operations Forecast is performed, by inputting all the Operational data that contribute to the relevant revenues and costs for each of the 5 Rental Properties, in order to end up with the EBITDA for the Short Term Rental Business.
CAPEX Calculation w/s: In this w/s the initial investments, as well as, any other CAPEX is imputed per year for each of the properties, in order to end up with the total CAPEX evolution.
Financial Assumptions & Calculations : In this w/s you may input the assumptions for the Income Statement and the Balance Sheet. The rest of the calculations for the Cash Flow Statement and the various financial schedules are performed automatically.
Project Valuation w/s: Here you may perform a Capital Budgeting Valuation for your Project by using a Discounted Cash Flow method:
- Input the required data to estimate the Required Return on Equity (%) (Cost of Equity), and the WACC of the Firm.
- By using the Discounted Free Cash Flow method, the Valuation for the Project is performed automatically.
- Concerning the proceeds from end of 5Y period sale of Properties, you may use the calculated “Depreciated Value”, or you may input an assumed Market Value.
- A proposal to “Accept” or “Reject” the Project is given, according to the various valuation criteria: NPV, IRR, Profitability Index, Payback Period.

Reporting Worksheets (no input required) :

Financial Statements : This w/s contains the 5 year Forecast for the 3 main Financial Statements. All calculations concerning the “Forecast” period are performed automatically, using also the input from the “Fin. Assumptions & Calculations” w/s.
Summary_ Operations & Charts w/s: In the Operations Executive Summary w/s you may review the key operations data for your 5 year Forecast, and relevant charts, that may help you have a better understanding of your Business Forecast, and perhaps decide on fine-tuning adjustments needed.
Executive Summary_ Financials & Charts w/s: In the Financials Executive Summary w/s you may review the key data of your 5 year Forecast, and relevant charts, that may help you have a better understanding of your Business Forecast, and perhaps decide on fine-tuning adjustments needed.
Financial Ratios : Here you may see the values of the main Financial Ratios: Profitability & Return, Liquidity, Leverage, Asset Utilization.

We, at Stan Simons Consultants, will be available to assist you in any inquiries you may have and/or any challenges you may encounter concerning this model. We are committed to providing a smooth customer experience and after-sales service. Moreover, we will be available in the case you may need to tailor the model to specific business needs.

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