Valuation · Corporate Finance

Discounted Cash Flow Valuation Model

Project five years of free cash flow, discount it back at your cost of capital, and add a terminal value to get an intrinsic share price.

Reading This Tool

How To Use This Calculator

Build the model top-down: your best estimate of next year's free cash flow, how fast it grows over five years, and a terminal growth rate for everything after that.

WACC is your discount rate, the return your capital needs to earn for this to be worth funding. The chart compares nominal projected cash flow against its present-day value; the intrinsic share price at the top is what those future cash flows are worth today, once discounted back.

Your Inputs

Year 1 Free Cash Flow ($M) $50M

Growth Rate, Years 1-5 10%

Terminal Growth Rate 2.5%

WACC (Discount Rate) 9%

Net Debt ($M) $100M

Shares Outstanding (M) 40M

Current Market Price (Optional) $0

Terminal growth rate must stay below WACC or the terminal value formula breaks down, the model automatically floors the gap at 1 percentage point.

Valuation Result

Calculated Intrinsic Share Price

$0.00

Enterprise Value

$0M

Equity Value

$0M

PV of Terminal Value

$0M

Projected Free Cash Flow vs. Present Value

Nominal FCF Present Value of FCF

A DCF model is only as good as its inputs, small changes in WACC or terminal growth swing the output significantly. This tool is for building intuition about valuation mechanics, not for making an actual investment decision.

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