Adjusted Present Value Template
This adjusted present value template guides you through the calculation of APV starting with the value of the unlevered project and PV of debt financing.
Below is a preview of the adjusted present value template:
Download the Free Template
Enter your name and email in the form below and download the free template now!
Adjusted Present Value TemplateDownload the free Excel template now to advance your finance knowledge!
Adjusted Present Value (APV) is used for the valuation of projects and companies. It takes the net present value (NPV), plus the present value of debt financing costs, which include interest tax shields, costs of debt issuance, costs of financial distress, financial subsidies, etc..
The Adjusted Present Value for Valuation
The APV method to calculate the levered value (VL) of a firm or project consists of three steps:
Calculate the net value of debt financing (PVF), which is the sum of various effects, including:
- PV(interest tax shields) – our main focus
- PV(issuance costs)
- PV(financial distress costs)
- PV(other market imperfections)
Sum up the value of the unlevered project and the net value of debt financing to find the adjusted present value of the project. That is, VL = VU + PVF.
More Free Templates
For more resources, check out our business templates library to download numerous free Excel modeling, PowerPoint presentation, and Word document templates.