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Live demo

Back-book DCF — scenario explorer

A worked example of a deferred services back-book: contracts signed today, delivered and billed over 15 years. Move any assumption and the full model recalculates live. Every figure is invented.

Estimated NPV — 15 years + terminal

$107.8M

vs Base +$0 (+0.0%) · Operating PVs $71.1M · Terminal PV $36.7M

Scenario range

Bear$6.6M
Your case· you are here$107.8M
Base$107.8M
Bull$284.7M

Quick presets

Management case

Headline lever

Discount rate20.0%

The assumption a room argues about first. Small moves here swing the answer more than any operational lever below, which is exactly why it's the first slider on the page.

Operational levers

Terminal GP margin75%
Terminal attrition30%
Terminal conversion45%
Terminal take rate4.00%
Terminal growth rate4.0%

Delivery ramp profile

Share of theoretical revenue captured as delivery capacity matures. Base reaches 100% by year 7; Slow tops out under 95%.

EBITDA trajectory · 15 years

Where the operating assumptions show up

Present value composition

Where the $107.8M comes from

Terminal: 34% of NPV

Year by year

The model in detail

YearIncomeMarginGPOpexEBITDADFPV
Y1$578K35%$202K$450K-$248K0.833-$207K
Y2$2.3M53%$1.2M$950K$250K0.694$174K
Y3$4.9M65%$3.2M$1.3M$1.9M0.579$1.1M
Y4$8.9M73%$6.4M$1.6M$4.8M0.482$2.3M
Y5$14.4M75%$10.8M$1.9M$8.9M0.402$3.6M
Y6$20.5M75%$15.4M$2.2M$13.2M0.335$4.4M
Y7$34.1M75%$25.6M$2.4M$23.2M0.279$6.5M
Y8$43.3M75%$32.5M$2.5M$30.0M0.233$7.0M
Y9$52.9M75%$39.7M$2.6M$37.0M0.194$7.2M
Y10$62.9M75%$47.2M$2.8M$44.4M0.162$7.2M
Y11$73.5M75%$55.1M$3.0M$52.2M0.135$7.0M
Y12$84.5M75%$63.4M$3.1M$60.3M0.112$6.8M
Y13$96.0M75%$72.0M$3.3M$68.8M0.093$6.4M
Y14$108.1M75%$81.1M$3.4M$77.7M0.078$6.0M
Y15$120.7M75%$90.5M$3.5M$87.0M0.065$5.6M
Sum of operating PVs$71.1M
Terminal value (Gordon) $565.2M → PV$36.7M
NPV$107.8M

Method

Income = Volume × (1−Attrition) × Case value × Take rate × Delivery ramp · Conversion scalar. EBITDA = Income × Margin − Opex. PV = EBITDA × (1+r)−t. Terminal value uses Gordon Growth on year-15 EBITDA. Lever trajectories transition from current state to terminal over four years.

Caveat

Every figure is invented. This is a mechanism demo: the point is that each assumption is falsifiable on the spot, live in the room, rather than asserted from a spreadsheet nobody can interrogate.