DCF Model Troubleshooting Guide

When to read this file: If recalc.py shows errors OR valuation results seem unreasonable OR case selector not working properly.

Model Returns Error Values

#REF! Errors

• Usually caused by formulas referencing wrong rows after headers were inserted
• Solution: Rebuild with correct row references, or start over following layout planning
• Prevention: Define all row positions BEFORE writing formulas

#DIV/0! Errors

• Division by zero or empty cells
• Solution: Add IF statements to handle zeros: =IF([Divisor]=0,0,[Numerator]/[Divisor])

#VALUE! Errors

• Wrong data type in calculation (text instead of number)
• Solution: Verify all inputs are formatted as numbers

Valuation Seems Unreasonable

Implied price far too high

• Check terminal value isn't >80% of EV
• Verify terminal growth < WACC
• Review if growth assumptions are realistic
• Consider if margins are too optimistic

Implied price far too low

• Verify net debt vs net cash is correct
• Check if WACC is too high
• Review if projections are too conservative
• Consider if terminal growth is too low

Case Selector Not Working

Consolidation column not updating when switching scenarios

• Verify case selector cell contains 1, 2, or 3
• Check INDEX/OFFSET formulas reference correct row range and selector cell
• Ensure absolute references ($B$6) are used for selector
• Test by manually changing the selector cell and verifying projection values update