Use this DCF calculator to estimate enterprise value, equity value, intrinsic value per share, margin of safety.
Last updated
DCF forecast setup 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.
Display currency
Set the currency before entering money inputs. This changes output formatting, not the DCF math.
Quick scenarios
Use presets to compare a base, conservative, and growth case before fine-tuning individual assumptions.
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 value share
72.48%
Upside / downside vs price
86.69%
Terminal cash flow
$7,530,306.39
Final forecast-year cash flow rolled one more year at 2.5% terminal growth.
Market-price check
$45.00 current price
The model-implied value is 86.69% above the entered share price.
Forecast growth multiple
1.47x
Final forecast cash flow versus current free cash flow before terminal value is added.
Sensitivity table
Intrinsic value per share if the discount rate moves by 1 percentage point and terminal growth moves by 0.5 percentage points.
Discount rate
Terminal 2%
Terminal 2.5%
Terminal 3%
9%
$91.90
$97.62
$104.29
10%
$79.83
$84.01
$88.79
11%
$70.46
$73.62
$77.18
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. In this run, 72.48% of enterprise value comes from the terminal value. 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.
DCF calculator guide: discount projected cash flow into enterprise value and value per
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.
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.
A single discounted cash flow result can look more precise than it really is. The sensitivity table is designed to counter that by showing the implied value per share when the discount rate moves by one percentage point and terminal growth moves by half a percentage point.
The current share price input adds a margin-of-safety check. If the DCF estimate is above the price you entered, the upside percentage shows the gap between the model and the market price. If it is below the entered price, the same row shows the implied downside. That comparison is not a recommendation; it is a way to see whether the valuation case has room for forecast error.
Terminal value concentration
Many DCF models get a large share of enterprise value from the terminal value rather than the explicit forecast years. That can be reasonable for durable businesses, but it also means the valuation may depend heavily on the terminal growth rate and discount rate.
The calculator now reports the terminal value share directly. When that share is high, pressure-test the terminal growth assumption, compare it with long-run nominal economic growth, and consider whether the explicit forecast period is long enough to reach a realistic steady state.
Choosing inputs from filings and market data
For a public-company DCF, current free cash flow usually starts with operating cash flow minus capital expenditure, adjusted for unusual items when appropriate. Net debt usually means debt and similar financing claims minus cash and equivalents. Shares outstanding should reflect the share count you intend to value, including dilution if relevant.
The discount rate should match the risk, currency, and cash-flow type being discounted. Many analysts use WACC for enterprise free cash flow and a cost of equity for equity cash flow. Mixing a nominal cash-flow forecast with a real discount rate, or using a discount rate from a different currency, can make the output misleading.
Frequently asked questions
Why must the discount rate be higher than the terminal growth rate?
Because the stable-growth terminal-value formula divides by the spread between those two rates. If terminal growth equals or exceeds the discount rate, the perpetuity does not converge and the terminal value becomes mathematically invalid.
What is the difference between enterprise value and equity value?
Enterprise value reflects the value of the operating business before net debt is allocated. Equity value is what remains for common shareholders after subtracting net debt or adding net cash. Per-share value comes from dividing that equity estimate by shares outstanding.
Should I use revenue growth or free-cash-flow growth here?
This calculator is built around free cash flow, not revenue. Revenue growth alone is not enough for DCF unless it is translated into expected future cash flow after operating costs, taxes, working capital, and capital expenditure.
Why can two reasonable DCF models give very different answers?
Because DCF is highly assumption-sensitive. Differences in discount rate, terminal growth, cash-flow margins, or net-debt treatment can all move value materially even when both analysts are acting reasonably.
What is a DCF sensitivity table?
A DCF sensitivity table shows how the value per share changes when key assumptions move. This calculator tests nearby discount-rate and terminal-growth assumptions because those two inputs often have the largest effect on terminal value.
What does terminal value share mean?
Terminal value share is the percentage of enterprise value that comes from cash flows beyond the explicit forecast period. A high share is common, but it warns you that the valuation depends heavily on long-term assumptions.
How should I use the current share price input?
Enter a current share price only if you want to compare model value with a market price. The calculator then shows the upside or downside implied by your assumptions, but it does not decide whether a stock is worth buying.
Is this the same as an intrinsic value calculator?
It is a DCF-based intrinsic value calculator for free cash flow. Other intrinsic value tools may use earnings, book value, dividend discount models, or simplified assumptions, so compare methods rather than relying on one estimate.
