An Excel model demonstrating discounted cash flow (DCF), IRR, and CAGR analysis for real estate investment.
This is a higher-level real estate valuation model developed in Excel using the Discounted Cash Flow (DCF) method. The model helps assess whether a property is undervalued, by comparing its intrinsic value to current market value, and includes key return metrics like IRR and CAGR.
Key Features
- – 5-year rental cash flow forecast
- – Valuation using Discounted Cash Flow (DCF)
- – Intrinsic value vs. market price comparison
- – Return metrics: IRR (7%) and CAGR (6%)
- – Clean dashboard view with summary insights
- – One macro used to refresh dashboard output
- – Another macro used to export dashboard to PDF
Scenario Planning & Sensitivity
- – Key input cells allow users to change assumptions like purchase cost, renovation, and yield
- – Monthly rental income is an adjustable driver—change this to instantly see the impact on valuation, IRR, and overall return
- – Useful for basic what-if analysis and rental-based pricing sensitivity
Tools Used
- – Microsoft Excel
- – Market data research (Zoopla, Rightmove, estate agents)
- – Financial concepts: WACC, CAPM, IRR/CAGR
Status
This model is an early-stage prototype built as part of a financial modelling and FP&A skill development journey. Further enhancements may include:
- – Full financing scenario integration
- – Sensitivity dashboard
- – Dynamic charts and automation
Download the excel file from the link below.