This TMT financial model template is used to value technology, media, and telecom firms. This model provides a template to use and apply your own assumptions to see how they would affect a TMT firm. Included in this model is a three statement model of projected financial statements as well as a DCF analysis.
Use this TMT financial model template to test out different business states and conduct scenario analysis on a TMT firm!
CFI also has a free telecom industry comps template if you are interested in seeing a different form of valuation!
Contents
This TMT financial model template includes the following contents:
- Summary of Financial Information – credit statistics, ownership, stock data, and capitalization
- Historical Financials – income statement, balance sheet, cash flow statement
- Pro Forma Financial Statements – three statement model, interest rate calculation, capitalization breakdown, financial ratios
- Scenario Analysis – modifiable sets of assumptions to test multiple business and market scenarios
- Company Valuation – discounted cash flow analysis
Technology, Media, and Telecom (TMT) Companies
Technology, media, and telecom (TMT) is a high-level industry sector. This industry covers a wide array of firms that are similar because they devote significant efforts to research and development (R&D). Companies that sell hardware, software, internet, and mobile phones are all considered TMT firms. Microsoft, Apple, Google, and AT&T are all examples of TMT firms. TMT firms are put into sub-categories since there are so many different types of firms. Many of these also firms use some sort of subscription model so it is important to use a model that considers this, such as CFI's TMT financial model template.
Discounted Cash Flow Analysis
Discounted cash flow analysis models are one of the most common types of financial models used for valuation. They are used to calculate the net present value (NPV) of a company's future cash flows.
By discounting cash flows, we can capture the economic value of the company. Alternatively, if we discounted net income instead, it would give a misleading image of the company. For example, it is possible for a company to have positive net income but negative cash flow. In this case, the company is actually losing money, but that would not be accurately portrayed if we used net income instead of cash flow.
