DCF Calculator
Estimate enterprise value, equity value and value per share using a simplified discounted cash flow model.
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Understand this calculation
A discounted cash flow model estimates present value by discounting projected future free cash flows and a terminal value back to today.
Formula
Worked example
Using the default assumptions, the calculator projects five years of FCF, discounts each year, estimates terminal value, adjusts for net debt and divides by shares outstanding.
How to interpret the result
DCF is a scenario framework. The value is most useful when tested across multiple growth and discount-rate assumptions rather than treated as a precise target.
Assumptions & limitations
Discount rate must exceed terminal growth. Negative or unstable FCF can make the model unreliable. Forecasts, terminal assumptions and net debt definitions can materially change results.
Practical context
When this calculator is useful
A discounted cash flow model is useful when you want to translate explicit assumptions about future free cash flow into an estimated present value. It is best treated as a scenario framework rather than a precise forecast.
How investors commonly use it
Investors usually test several growth, discount-rate and terminal-growth assumptions rather than relying on one output. Comparing a range of estimated values can reveal which assumptions have the greatest influence on the valuation.
What DCF does not tell you
A DCF cannot remove uncertainty from forecasting. Small changes in the discount rate or terminal growth rate can materially alter the result, and unstable or negative free cash flow can make the model especially sensitive or unsuitable.