DCF Calculator

Estimate a stock's intrinsic value using Discounted Cash Flow analysis

DCF Inputs

Annual Free Cash Flow

Find on Yahoo Finance → Cash Flow Statement → Free Cash Flow (TTM)

$1.00B

Growth Yrs 1-5 (%)

Expected growth in early years. High-growth: 15-25%, mature: 5-10%

Growth Yrs 6-10 (%)

Slower, mature growth phase. Usually lower than years 1-5

Terminal Growth (%)

Long-term perpetual growth rate. Usually 2-4%

Discount Rate (%)

Required return / WACC. Usually 8-12% for stocks

Shares (millions)

Find on Yahoo Finance → Statistics

Net Cash

Cash minus Total Debt. Use negative if debt exceeds cash

Fair Value Per Share

$21.02

FCF 45%Terminal 55%

PV Cash Flows

$9.36B

44.5%

PV Terminal

$11.66B

55.5%

Enterprise Value

$21.02B

Equity Value

$21.02B

FCF Growth Projection

Year 1:$1.10B

Year 10:$2.06B

Year-by-Year Cash Flow Projections

Metric	Y1	Y2	Y3	Y4	Y5	Y6	Y7	Y8	Y9	Y10	Terminal
Growth Rate	10%	10%	10%	10%	10%	5%	5%	5%	5%	5%	3%
Free Cash Flow	$1.10B	$1.21B	$1.33B	$1.46B	$1.61B	$1.69B	$1.78B	$1.86B	$1.96B	$2.06B	-
Present Value	$1000.00M	$1000.00M	$1000.00M	$1000.00M	$1000.00M	$954.55M	$911.16M	$869.74M	$830.21M	$792.47M	$11.66B

Sum PV (Years 1-10)$9.36B

+ Terminal PV$11.66B

= Enterprise Value$21.02B

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Understanding DCF Valuation

What is DCF?

Discounted Cash Flow estimates intrinsic value by projecting future free cash flows and discounting them to present value. Based on the principle that money today is worth more than money tomorrow.

Where to Find Data

• FCF: Yahoo Finance → Cash Flow
• Shares: Yahoo Finance → Statistics
• Cash/Debt: Balance Sheet
• Growth: Analyst estimates

Key Limitations

• Highly sensitive to assumptions
• Terminal value often dominates
• Future cash flows are uncertain
• Use with other valuation methods

This DCF calculator provides estimates based on your assumptions. Not financial advice. Always conduct thorough research before making investment decisions.

What is a DCF Calculator?

A Discounted Cash Flow (DCF) calculator is a fundamental valuation tool used by investors and analysts to estimate the intrinsic value of a stock or business. It works by projecting future free cash flows and discounting them back to their present value using an appropriate discount rate (typically the Weighted Average Cost of Capital or WACC).

How DCF Valuation Works

The DCF model is based on the principle that money today is worth more than the same amount in the future (time value of money). The calculation involves three main components:

Projected Cash Flows: Estimate future free cash flows for typically 5-10 years
Terminal Value: Estimate the company's value beyond the projection period
Discount Rate: The rate used to discount future cash flows to present value

DCF Formula

The basic DCF formula is: DCF = Σ (FCF / (1 + r)^n) + Terminal Value / (1 + r)^n

Where FCF is Free Cash Flow, r is the discount rate, and n is the number of years.

When to Use DCF Analysis

DCF analysis works best for:

Companies with predictable, positive free cash flows
Stable, mature businesses
Long-term investment decisions
Comparing intrinsic value to market price

Limitations to Consider

While powerful, DCF analysis has important limitations:

Highly sensitive to input assumptions (small changes = big value swings)
Terminal value often accounts for 60-80% of total value
Difficult to apply to unprofitable or high-growth companies
Requires accurate forecasting of future cash flows

Disclaimer: This calculator is for educational purposes only. DCF valuation involves significant assumptions and should be used alongside other valuation methods. Always conduct thorough research before making investment decisions.

Free DCF Calculator by Money365.Market

Educational purposes only. Not financial advice.