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Discounted Cash Flow (DCF) Calculator

Estimate a stock’s intrinsic value per share with a simplified discounted cash flow model: project free cash flow, discount it, and add a terminal value.

Current annual free cash flow

FCF growth rate

Discount rate

Projection years

Terminal growth rate

Shares outstanding

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How it works

Value = Σ FCFₜ ÷ (1 + d)ᵗ + [FCF_N × (1 + tg) ÷ (d − tg)] ÷ (1 + d)^N · Per share = value ÷ shares

A discounted cash flow model values a company as the present value of the cash it will generate in the future. This simplified version grows current free cash flow for a set number of years, discounts each year back to today at your required return, then adds a terminal value — the worth of all cash beyond the forecast, growing forever at a modest rate — discounted the same way. Dividing that total by shares outstanding gives an intrinsic value per share to compare against the market price.

Worked example

Starting from $1,000,000,000 of free cash flow growing 8% for 5 years, discounted at 10%, the five years’ cash flows are worth about $4.73B today. Year-5 FCF of roughly $1.469B grows 2.5% into a terminal value near $20.08B, worth about $12.47B discounted back — a total equity value around $17.20B, or about $34.40 per share across 500,000,000 shares.

Frequently asked questions

Why is DCF so sensitive to the inputs?

Small changes in the discount rate or terminal growth rate move the terminal value a lot, and the terminal value is usually most of the total. That is why a DCF gives a range of plausible values, not one exact number.

What discount rate should I use?

Typically the weighted average cost of capital (WACC) or your personal required return. A higher rate reflects more risk and produces a lower valuation; there is no single correct figure.

What is the terminal value?

It captures all cash flows after the explicit forecast period, valued as a perpetuity growing at a low, sustainable rate — usually near long-run GDP or inflation, and always below the discount rate.

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Educational estimate, not investment advice. Ratios and valuation models are simplifications; verify figures against official filings and consult a licensed advisor before investing.