If you had to do a DCF in 15-30 minutes, which parts would you simplify? Why those specific parts of the model?

  • D&A (just percent of revenue or capex instead of building PP&E schedule)
  • Capex (just percent of revenue)
  • Change in NWC (percent of change in revenue)

These parts take up time since typically, separate models and schedules are built for them. However, they have relatively less of an impact on the valuation output compared to revenue growth, EBITDA margin expansion, WACC, and terminal value.
Also, for public companies, costs can be consolidated into cost of goods sold (COGS), selling, general and adminstrative (SG&A), and research and development (R&D) rather than listing every cost item separately. These lines can be driven on a % of revenue basis, although SG&A can also be driven on a % change basis. Assume all one-time items are 0 going forward.