DCF Valuation Calculator — Free Online Calculator
Free DCF valuation calculator computes intrinsic stock value from projected free cash flows and terminal value. Instant browser results, no signup needed.
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How It Works
Enter current free cash flow, projected annual growth rate, discount rate, terminal growth rate, projection period in years, shares outstanding, and current stock price. The calculator discounts each projected year cash flow to present value and adds terminal value. Normalize FCF by removing one time legal settlements and working capital spikes from trailing twelve months before projecting. Capital intensive businesses may understate FCF if growth capex is bundled into maintenance line. Two stage DCF with five year high growth and terminal phase often fits cyclicals better than single growth rate for entire explicit period. This tool uses one growth rate for simplicity: adjust input growth to reflect average explicit period expectation. Document bull base bear growth and discount rate scenarios in investment memo alongside single headline intrinsic value to avoid false precision from one DCF point estimate. Normalize maintenance capex from trailing FCF when company reports lumpy capital spending that distorts single year free cash flow input.
Review intrinsic value, per share value, margin of safety percentage, terminal value contribution, and year by year discounted cash flow table. If terminal value exceeds sixty percent of total, stress test terminal growth down one point before trusting headline value. Terminal value often exceeds sixty percent of enterprise value in five year DCF. Stress terminal growth at one percent and two percent alongside base three percent case. Enterprise value based DCF adds net debt adjustment after equity intrinsic value. Per share value requires fully diluted shares and treasury stock method for options. Compare implied per share value to current market price and to peer median EV FCF multiple as sanity check on DCF output before sizing position. Terminal value sensitivity table: reduce terminal growth one point and observe intrinsic value change before trusting single point DCF output. Compare DCF per share output to analyst consensus and to peer EV FCF multiple median before initiating position from valuation gap alone.
Per share value requires fully diluted shares and treasury stock method for options. Terminal value sensitivity table: reduce terminal growth one point and observe intrinsic value change before trusting single point DCF output. Compare DCF per share output to analyst consensus and to peer EV FCF multiple median before initiating position from valuation gap alone.
Use DCF Valuation Calculator whenever inputs change: after market moves, new contributions, or revised personal assumptions. Bookmark the page for quick reruns without installing software.
Step by step
- Enter FCF, growth rate, discount rate, terminal growth, years, shares, and current price
- Review intrinsic value, per share value, and margin of safety
- Run bull, base, and bear growth cases by adjusting inputs
Worked example
Enter current free cash flow, projected annual growth rate, discount rate, terminal growth rate, projection period in years, shares outstanding, and current stock price. Enter the sample inputs described in How it works to reproduce the scenario step by step.
Adjust one input at a time to see sensitivity. DCF Valuation Calculator updates instantly so you can stress test optimistic and conservative assumptions before acting.
When to use this calculator
Reach for DCF Valuation Calculator when calculate intrinsic stock value from projected free cash flows and terminal value.. It suits quick what if analysis before trades, allocation changes, or plan updates.
Pair with related tools when the decision spans taxes, liquidity, or multi year projections beyond what one formula captures.
Common mistakes
Copying outputs without checking input units or stale market prices is a frequent error with DCF Valuation Calculator. Confirm tickers, percentages, and dates before acting.
Running a single baseline scenario ignores tail risks. Stress test with conservative inputs and compare against related tools listed below when the decision is material.
The Formula
For each year t: CF_t = currentFcf × (1 + g)^t
PV_t = CF_t / (1 + r)^t
Terminal Value = CF_n × (1 + tg) / (r - tg)
PV of Terminal = Terminal Value / (1 + r)^n
Intrinsic Value = sum of PV_t + PV of Terminal
Per Share = Intrinsic Value / sharesOutstanding
Margin of Safety = (perShare - currentPrice) / perShare × 100
Gordon growth terminal value requires discount rate greater than terminal growth. Uses single stage terminal model. Share count should reflect fully diluted shares when options are material. Terminal growth must stay below discount rate. Multi stage DCF not modeled in single terminal growth version. Single stage terminal Gordon growth. Multi stage professional models differ materially for high growth firms. Reverse DCF implied growth rate from current price helps sanity check whether market embeds optimistic cash flow assumptions.
Limitations and assumptions
Gordon growth terminal value requires discount rate greater than terminal growth. Uses single stage terminal model. Share count should reflect fully diluted shares when options are material. Terminal growth must stay below discount rate. Multi stage DCF not modeled in single terminal growth version. Single stage terminal Gordon growth. Multi stage professional models differ materially for high growth firms. Reverse DCF implied growth rate from current price helps sanity check whether market embeds optimistic cash flow assumptions. DCF Valuation Calculator does not replace personalized advice. Fees, slippage, account specific rules, and behavioral constraints may change real world outcomes.
Key terms
- What is a Discounted Cash Flow valuation
- DCF estimates intrinsic value by projecting future free cash flows and discounting to today.
- What discount rate and growth rates should I use
- Discount rate is required return, often eight to twelve percent for equities.
- Model assumption
- Intrinsic value sums discounted cash flows plus present value of terminal value.
Compare alternatives
Screen with Free Cashflow Yield, sanity check with Graham Number, and size positions with Margin of Safety on portfolios. Use those calculators when dcf valuation calculator alone does not capture the full decision.
Internal links on portfolios.tools help you chain calculators: run DCF Valuation Calculator first, then validate edge cases with a specialized tool from the related section below.
FAQ
What is a Discounted Cash Flow valuation?
DCF estimates intrinsic value by projecting future free cash flows and discounting to today. Best suited for mature companies with positive predictable FCF. Negative FCF companies need revenue based or optionality models instead of standard DCF. Negative terminal value impossible when terminal growth below discount rate. Violation signals inputs inconsistent.
What discount rate and growth rates should I use?
Discount rate is required return, often eight to twelve percent for equities. Terminal growth is perpetual rate after projections, typically two to three percent, must stay below discount rate. WACC blends cost of equity and debt. Use WACC calculator on portfolios.tools for discount rate input. Country risk premium may be added to discount rate for emerging market cash flows.
How are intrinsic value and margin of safety calculated?
Intrinsic value sums discounted cash flows plus present value of terminal value. Margin of safety equals per share value minus price divided by per share value times one hundred. Fully diluted share count includes in the money options using treasury stock method. Margin of safety twenty five percent plus is common value investor hurdle before purchase.
How sensitive are the results to inputs?
DCF is highly sensitive to discount rate and terminal growth. Use ranges not point estimates for decisions. Terminal value often dominates total. Scenario tables with bull base bear growth rates prevent false precision from single point estimate. Reverse DCF solves implied growth market price embeds given discount assumptions. Scenario analysis with bull base bear growth rates prevents overconfidence from single DCF intrinsic value estimate.
What related valuation tools should I use?
Screen first with Free Cashflow Yield. Cross check with Graham Number. Size positions with Margin of Safety calculator. Cross check with trading multiples EV EBITDA and peer FCF yield after intrinsic value estimate. Free cashflow yield screener filters universe before detailed DCF on top names. Enterprise value adjustment for net debt may materially change per share intrinsic value versus equity value only DCF on unlevered basis.
How do I use this DCF valuation calculator on phone or tablet?
Yes. DCF Valuation Calculator runs entirely in your mobile browser with the same formulas as desktop. Optional localStorage may remember inputs on your device when enabled in browser settings.
Where is my data stored when I use DCF Valuation Calculator?
Nowhere on our servers. Calculations execute locally in your browser. Optional localStorage saves form fields on your device only and never transmits portfolio numbers over the network.
Should I rely on DCF Valuation Calculator for tax or legal decisions?
No. DCF Valuation Calculator provides educational math only. Tax law, account rules, and personal circumstances vary. Consult a qualified tax or legal professional before transactions with material consequences.
Related Tools
Screen with Free Cashflow Yield, sanity check with Graham Number, and size positions with Margin of Safety on portfolios.tools when building fundamental valuation workflow around DCF output. Complete valuation stack with Free Cashflow Yield, Graham Number, Margin of Safety, and Enterprise Value on portfolios.tools. Run Free Cashflow Yield screen first then DCF detail then Margin of Safety sizing on portfolios.tools valuation pipeline. Complete valuation workflow with Free Cashflow Yield, Graham Number, and Margin of Safety tools on portfolios.tools after DCF intrinsic value estimate.