DCF Calculator

Estimate enterprise value, equity value, and intrinsic value per share by discounting projected free cash flow and a terminal value.

Forecast cash flow, then discount it This DCF model projects free cash flow for a fixed horizon, adds a perpetuity-style terminal value, subtracts net debt, and converts the result to an intrinsic value per share.

Current free cash flow ($) Annual cash-flow growth (%)

Discount rate (%) Terminal growth (%)

Projection horizon (years) Shares outstanding

Net debt ($, use negative for net cash)

Display currency

Switch the display currency for the valuation outputs without changing the DCF math.

Currency

Assumptions

This model uses one constant growth rate during the explicit forecast period and one stable terminal growth rate afterward. It does not estimate the discount rate for you or replace full security analysis.

Result

$84.01

Estimated intrinsic value per share after projecting 5 years of cash flow and subtracting net debt from enterprise value.

Enterprise value: $86,012,011.42
Equity value: $84,012,011.42
PV of forecast cash flow: $23,668,973.97
PV of terminal value: $62,343,037.45

Terminal cash flow

$7,530,306.39

Final forecast-year cash flow rolled one more year at 2.5% terminal growth.

Forecast growth multiple

1.47x

Final forecast cash flow versus current free cash flow before terminal value is added.

Forecast schedule

Year	Projected FCF	Discount factor	Present value
1	$5,400,000.00	0.91	$4,909,090.91
2	$5,832,000.00	0.83	$4,819,834.71
3	$6,298,560.00	0.75	$4,732,201.35
4	$6,802,444.80	0.68	$4,646,161.33
5	$7,346,640.38	0.62	$4,561,685.67

How to use this result

DCF is most useful as a disciplined scenario tool. If a small change in discount rate or terminal growth moves value sharply, treat the output as a range rather than as a precise fair-value target.

Valuation Basics

DCF calculator guide: discount projected cash flow into enterprise value and value per share

A discounted cash flow calculator estimates what a business may be worth today by forecasting future free cash flow, discounting those cash flows back to present value, and then adding a terminal value for cash generated beyond the explicit forecast period. It is one of the most common ways investors turn operating assumptions into a valuation range instead of relying on a single market multiple.

About this calculator

Reviewed 2026-03-21

Methodology

Projects current free cash flow forward at the entered annual growth rate, discounts each forecast cash flow by the selected discount rate, adds a stable-growth terminal value, subtracts net debt, and divides by shares outstanding to estimate value per share.

Limitations

Uses one constant growth rate during the explicit forecast period and one stable terminal growth rate after it.
Does not estimate an appropriate discount rate, weighted average cost of capital, or capital-structure assumptions for you.
Does not model dilution, share buybacks, taxes, cyclicality, recession scenarios, or multiple forecast stages.
This is a scenario tool for valuation planning, not investment advice or a substitute for full security analysis.

Disclaimer

Treat this output as an assumption-driven valuation range only. Before relying on it for an investment decision, compare the inputs with audited filings, management guidance, and other valuation methods.

Sources

NYU Stern — Basics of Discounted Cash Flow Valuation — Academic reference covering explicit forecast cash flows, terminal value, and discount-rate treatment.
Investor.gov — Present value — Official investor glossary entry supporting the present-value treatment of future cash flows.
Investor.gov — How to read a 10-K/10-Q — Official investor guidance on reading the filings that typically supply core DCF input data.

See our calculation methodology and editorial standards for how this estimate is produced.

What a DCF model is really doing

DCF valuation starts with an operating assumption rather than a market quote. You project the cash a business may generate in future years, then discount each forecast amount by a required rate of return that reflects the risk of waiting for those cash flows.

That approach matters because a dollar of cash expected several years from now is not worth a full dollar today. The higher the discount rate, the less those future cash flows are worth in present-value terms. That is why DCF is sensitive to both the growth assumptions and the discount rate selected by the analyst.

Core DCF maths

The forecast period begins with a current free-cash-flow figure and grows it forward at the selected annual rate. Each projected cash flow is then discounted by the chosen discount rate. After the final explicit forecast year, a perpetuity-style terminal value estimates the value of all later cash flows using a stable terminal growth rate.

The sum of the discounted forecast cash flows and discounted terminal value gives enterprise value. Subtracting net debt converts enterprise value to an equity value estimate. Dividing by shares outstanding produces an implied value per share.

Projected FCF_t = Current FCF x (1 + growth rate)^t

Projects free cash flow forward one year at a time during the explicit forecast horizon.

Enterprise value = Sum(FCF_t / (1 + r)^t) + Terminal value / (1 + r)^n

Adds the present value of explicit forecast cash flows and the present value of the terminal value.

Terminal value = FCF_(n+1) / (r - g)

Uses a stable-growth perpetuity where r is the discount rate and g is the terminal growth rate.

From enterprise value to value per share

Enterprise value is the value of the operating business before financing claims are allocated. To estimate what common shareholders may own, you adjust that enterprise value for net debt. A company with significant net debt has less equity value than the same enterprise value would suggest, while net cash can lift equity value.

The final step is dividing the equity value estimate by shares outstanding. That turns the business-level valuation into a per-share figure that is easier to compare with a current market price, a target price range, or another valuation method such as a price-to-earnings or dividend-discount model.

Why DCF outputs should be treated as a range

Small changes in discount rate, terminal growth, or forecast cash flow can move the result sharply. That is normal, not a bug. Most of the value in a long-duration DCF often comes from later years and from the terminal value, which means the model is only as credible as the assumptions behind those inputs.

Use a DCF calculator to test scenarios and compare the effect of different assumptions, not to claim one precise fair value. If the output changes dramatically after a small tweak, that is a useful warning that the valuation case depends heavily on assumptions that deserve more scrutiny.

DCF Calculator

$84.01

DCF calculator guide: discount projected cash flow into enterprise value and value per share

What a DCF model is really doing

Core DCF maths

From enterprise value to value per share

Why DCF outputs should be treated as a range

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