DCF calculator
This discounted-cash-flow model grows last year's free cash flow, discounts those cash flows, then adds a Gordon growth terminal value. Type the share count yourself. The result is the output of your assumptions, not a buy price.
FCF in year t = starting FCF × (1 + growth)t
Terminal value = FCFn × (1 + terminal growth) ÷ (discount rate − terminal growth)
Value per share = (PV of FCFs + PV of terminal value + cash − debt) ÷ shares
Value per share
Enter starting free cash flow, years, growth, discount rate, terminal growth, and shares to calculate.
How to run this DCF
- Enter starting free cash flow and years. Positive FCF in USD and a whole number of projection years from 1 to 50. Year t cash flow is starting FCF times (1 + growth) to the t.
- Enter growth, discount rate, and terminal growth. Percents, for example 5 for 5%. Terminal growth must stay below the discount rate.
- Enter cash, debt, and shares. Type the share count. The ranking snapshot is not used as a share count. Optional margin of safety haircuts value per share.
Frequently asked questions
- How does this DCF work?
- It grows last year’s free cash flow for a stretch of years, discounts those cash flows, then adds a Gordon growth terminal value. Cash is added and debt is subtracted, then the equity value is divided by the shares you type. Starting FCF of $100, 5% growth, 10% discount, 3% terminal growth, $50 cash, $20 debt, and 10 shares is about $163.19 a share.
- Is the DCF value a buy price?
- No. It is the output of the assumptions you typed. A margin of safety is that value times one minus the haircut — still a model number, not a recommendation.
- Is this investment advice?
- No. The calculator is for general informational and educational purposes only. It is not a recommendation to buy, sell, or hold any security.