Discounted Cash Flow Calculator

Two-stage Discounted Cash Flow (DCF) calculator using a Gordon Growth terminal value. Input FCF, growth, discount rate, net debt and shares to estimate EV, equity value, per‑share intrinsic value, and optional implied upside.

Discounted Cash Flow (DCF)

Two‑stage growth (years 1–5 and 6–10) with a Gordon Growth terminal value. Add net debt and shares to get per‑share value and (optionally) implied upside.

DCF results will appear here after you click Calculate. Defaults are prefilled.

DCF formulas and notes

Two-stage growth: years 1–5 g1, years 6–10 g2.
Terminal value: TV = FCF₁₀ × (1 + gₜ) ÷ (r − gₜ), discounted to present at year 10.
Enterprise value = PV of flows + PV of terminal value; Equity = EV − Net Debt; Per share = Equity ÷ Shares.

What is Discounted Cash Flow?

This Discounted Cash Flow calculator helps you turn a company’s future cash into today’s value. You sketch out the cash it could make and “discount” those amounts back to the present.

In practice you add two pieces: the present value of the next 10 years of cash flows, plus a terminal value (everything after year 10) brought back to today. Many investors use a DCF calculator to get a fundamentals‑driven view.

When to use DCF

You have a reasonable view of long‑term cash generation.
The business is or will soon be cash‑flow positive.
You want a fundamentals‑driven estimate, not just today’s market mood.

Key variables

FCF₀: your latest free cash flow starting point.
g1, g2: growth assumptions for years 1–5 and 6–10.
r: discount rate (your required return or WACC).
gₜ: long‑run, steady‑state growth; must be below r.
Net debt: Debt − cash. Equity = Enterprise value − Net debt.
Shares: used to convert equity value into per‑share value.

Choosing discount and terminal growth rates

Your discount rate reflects risk and opportunity cost. Many investors try 8–15% depending on quality, leverage, and cyclicality.

Terminal growth should be sustainable and conservative—typically below long‑run nominal GDP and strictly below the discount rate.

Common pitfalls

Assuming high growth forever—fade it toward a steady state.
Setting terminal growth close to or above the discount rate.
Forgetting dilution, capex, or working capital needs in FCF.

Worked example (intuition)

Suppose FCF₀ = 100, g1 = 8%, g2 = 4%, r = 10%, gₜ = 2%. A higher r (risk) lowers value; higher growth lifts value.

Play with the inputs to see how sensitive the valuation is to your assumptions.

DCF FAQ

Is DCF sensitive to assumptions?

Yes. Small changes in r or gₜ can move value substantially. Use ranges.

Which FCF should I use?

Owner FCF or firm FCF consistently; avoid mixing definitions across years.

What if the company has net cash?

Negative net debt increases equity value: Equity = EV − Net Debt.