Discounted Cash Flow (DCF) Calculator

Your details

Last twelve months (LTM) free cash flow in millions of dollars. Found on the cash flow statement as operating cash flow minus capital expenditures.
$M
Expected annual growth rate of free cash flow for the first five years. Use analyst consensus or your own estimate.
%
Expected annual growth rate for years 6 through 10. Typically lower than stage 1 as growth matures.
%
The perpetual growth rate beyond year 10, often set near long-run GDP growth (2-3%). Must be less than the discount rate.
%
The Weighted Average Cost of Capital (WACC) used to discount future cash flows. Reflects the riskiness of the investment. Typical range: 8-12% for established companies.
%
Total cash, cash equivalents, and short-term investments on the balance sheet.
$M
Total interest-bearing debt including short-term and long-term borrowings.
$M
Total shares outstanding in millions. Found on the income statement or company filings.
M
The current market price per share. Used to calculate margin of safety.
$
Currency
Fair Value Per ShareDeeply Undervalued
$57.20

Estimated intrinsic value per share based on discounted future cash flows

Margin of Safety38.8%
Enterprise Value (EV)2,840$M
Equity Value2,860$M
Terminal Value (PV)1,677$M
PV of 10-Year Cash Flows1,164$M
PV of 10-Yr Cash Flows1,164
Terminal Value (PV)1,677
38.8%
Significantly Overvalued<-30%Overvalued-30%--10%Fairly Valued-10%-10%Undervalued10%-30%Deeply Undervalued30%+

Strong buy signal: fair value $57.20, stock trades 38.8% below intrinsic value.

  • Terminal value makes up approximately 59% of total enterprise value, so your terminal growth rate assumption is critical.
  • At the current price of $35.00, you have a potential upside of $22.20 per share.
  • DCF analysis is only as good as its assumptions. Test your results with conservative (lower growth, higher discount) and optimistic scenarios.
  • A margin of safety of 20-30% or more gives a buffer against overly optimistic assumptions or unforeseen business risks.

Next stepRun a sensitivity analysis: reduce your Stage 1 growth rate by 5 percentage points and increase the discount rate by 2 points to see how the fair value changes under more conservative assumptions.

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