How to Use Intrinsic Value Calculator
The Intrinsic Value Calculator estimates per-share fair value using a two-stage DCF. Enter current free cash flow, forecast growth rate, horizon, discount rate, terminal growth and shares outstanding. The Intrinsic Value Calculator outputs total intrinsic value, per-share value and a margin-of-safety buy price.
- Pick a currency.
- Enter FCF, growth and horizon for stage one.
- Enter discount rate — typically WACC.
- Enter terminal growth — must be below discount rate.
- Set shares outstanding and margin of safety.
Formula & Theory — Intrinsic Value Calculator
The Intrinsic Value Calculator uses:
PV(FCF) = Σ FCFₜ / (1 + r)ᵗ for t = 1..N
Terminal Value = FCF_N × (1 + g_t) / (r - g_t)
PV(TV) = Terminal Value / (1 + r)^N
Intrinsic V = PV(FCF) + PV(TV)
Per Share = Intrinsic V / Shares
Fair Buy = Per Share × (1 - Margin of Safety)| Symbol | Meaning |
|---|---|
| FCF | Free cash flow |
| r | Discount rate |
| g | Growth rate |
| g_t | Terminal growth |
| N | Forecast horizon |
Assumptions and Limits
The Intrinsic Value Calculator assumes stable growth in the forecast period and a Gordon terminal. Sensitivity testing is strongly recommended.
Use Cases for Intrinsic Value Calculator
- Value investing — find fair value vs market price.
- Sensitivity tables — sweep WACC and terminal growth.
- Education — practise DCF mechanics.
- Equity screening — quickly filter cheap names.