DCF Calculator

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Value a business from its cash flows — project, discount, and add a terminal value to estimate intrinsic worth.

Full Two-Stage Model

Explicit cash-flow projection plus a Gordon-growth terminal value

EV → Equity → Per Share

Bridge from enterprise value to intrinsic value per share

Terminal-Value Share

See how much of the answer rests on long-run assumptions

Discounted Cash Flow Valuation

Project free cash flows, discount them to today, and add a Gordon-growth terminal value to estimate intrinsic value.

How a Discounted Cash Flow Valuation Works

The Two Stages

A DCF splits the future in two. The explicit period projects free cash flow year by year (here, growing at your chosen rate) and discounts each year back to today. The terminal value captures everything after that, assuming the business settles into a steady long-run growth rate forever.

The Core Formulae

PV = Σ FCFₜ / (1 + d)ᵗ
TV = FCF_N × (1 + g) / (d − g)

Where FCFₜ is free cash flow in year t, d is the discount rate (WACC), g is the terminal growth rate, and N is the last projection year. Enterprise value is the sum of all discounted cash flows plus the discounted terminal value.

Why the Terminal Value Dominates

It Is Usually the Majority

For a typical 5-year model, the terminal value often accounts for 60–80% of enterprise value. That is normal — but it means your valuation is mostly a bet on the long-run growth and discount rate, not the detailed near-term forecast.

So Stress-Test It

Re-run the model with the discount rate ±1% and the terminal growth ±0.5%. If intrinsic value per share swings wildly, treat the single-point answer with caution and lean on a valuation range instead.

How to Use This DCF Calculator

Enter Free Cash Flow

Start with the company's current annual free cash flow and a realistic growth rate.

Set Discount & Terminal

Choose a WACC and a long-run terminal growth rate (below the WACC).

Read the Valuation

See enterprise value, equity value, and — with shares outstanding — intrinsic value per share.

Limitations to Keep in Mind

Garbage in, garbage out. A DCF is only as good as its inputs. Cash-flow forecasts and the discount rate are estimates, not facts.
It suits stable cash generators. DCF works best for profitable businesses with predictable cash flow. For early-stage or loss-making companies, multiples or scenario analysis are often more honest.
Pair it with sanity checks. Compare the implied valuation against trading multiples (EV/EBITDA, P/E) and the current market price before drawing conclusions.

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