How to Use Discounted Cash Flow Calculator
The Discounted Cash Flow Calculator estimates intrinsic value from future free cash flow. Enter current free cash flow, forecast growth rate, discount rate or WACC, forecast years, terminal growth rate, cash, debt, shares outstanding, and current share price. The result shows enterprise value, equity value, terminal value present value, intrinsic value per share, and upside or downside versus current price.
Use the Discounted Cash Flow Calculator for stock valuation, company analysis, project cash flow review, and investment learning.
Formula & Theory — Discounted Cash Flow Calculator
The Discounted Cash Flow Calculator uses a simplified DCF model:
DCF Value = Sum of FCF_t / (1 + r)^t + Terminal Value / (1 + r)^n
Terminal Value = FCF_n * (1 + g) / (r - g)
Equity Value = Enterprise Value + Cash - Debt
| Symbol | Meaning |
|---|---|
| FCF | Free cash flow forecast |
| r | Discount rate or WACC |
| g | Terminal growth rate |
DCF is highly sensitive to growth, discount rate, and terminal assumptions. The Discounted Cash Flow Calculator should be used as a scenario tool rather than a precise prediction.
Use Cases for Discounted Cash Flow Calculator
The Discounted Cash Flow Calculator is useful for:
- Stock valuation — Estimate intrinsic value per share.
- Business acquisition review — Compare price with expected cash flows.
- Project analysis — Discount future cash flow from a long-term project.
- Sensitivity thinking — Test how assumptions change value.
The Discounted Cash Flow Calculator provides a clear valuation framework for comparing cash flow expectations with market price.