DCF Valuation Calculator

Estimate a company's intrinsic value per share from projected free cash flows.

Free cash flow this year	$10,000,000
Growth for years 1–5	10 %
Terminal growth rate	2.5 %
Discount rate (WACC)	9 %
Net debt	$20,000,000
Shares outstanding	10,000,000

Free cash flow this year

Growth for years 1–5

Terminal growth rate

Discount rate (WACC)

Net debt

Shares outstanding

Value per share

$19.65

Enterprise value $216,452,946 (76% from the terminal value); equity value $196,452,946.

Enterprise value

Years 1–5 cash flows24%: $51,393,097
Terminal value76%: $165,059,850

Projected cash flows

Year	Free cash flow	Present value
1	$11,000,000	$10,091,743
2	$12,100,000	$10,184,328
3	$13,310,000	$10,277,762
4	$14,641,000	$10,372,054
5	$16,105,100	$10,467,210

About the DCF Valuation Calculator

A discounted cash flow model projects free cash flow for several years, adds a terminal value for everything after (Gordon growth: next year's cash flow ÷ (r − g)) and discounts it all at the cost of capital. Subtract net debt to get equity value. Results are very sensitive to the discount and terminal growth rates.

The formula

EV = Σ FCFₜ ÷ (1 + r)ᵗ + [FCF₅ × (1 + g) ÷ (r − g)] ÷ (1 + r)⁵

Worked example

Example: Value per share = $18.08

Inputs: Free cash flow this year: $11,000,000; Growth for years 1–5: 11%; Terminal growth rate: 2.8%; Discount rate (WACC): 10%; Net debt: $22,000,000; Shares outstanding: 11,000,000.
Formula: EV = Σ FCFₜ ÷ (1 + r)ᵗ + [FCF₅ × (1 + g) ÷ (r − g)] ÷ (1 + r)⁵
Result: Value per share = $18.08

Questions people ask

Why is terminal value so big?

It captures all years after the forecast; keep terminal growth near long-run inflation or GDP growth.

What is free cash flow?

Operating cash flow minus capital expenditure.