Discounted Cash Flow (DCF) Valuation Calculator
Estimate the intrinsic stock value of a company using multi-stage Free Cash Flow projections. Perform sensitivity analyses mapping target WACC rates vs perpetual growth milestones.
Enter parameters on the left to calculate DCF value.
Sensitivity Analysis: Stock Price under Varying WACC vs. Growth Rates
The table below demonstrates how the calculated stock value per share changes based on different combinations of discount rates and terminal growth targets. WACC rate moves in rows, Terminal Growth moves in columns.
Understanding Discounted Cash Flow (DCF) Valuation
The Discounted Cash Flow (DCF) model estimates the intrinsic value of an investment based on its expected future cash flows. The model projects the company’s Free Cash Flows (FCF) over a specified period (here, 10 years) and discounts them back to the present value using WACC. WACC serves as the required rate of return that matches the firm’s cost structure.
DCF Mathematical Progression
1. Free Cash Flow Discounting:
2. Terminal Value (Perpetual Growth Method):
Terminal Value captures the value of all cash flows beyond the 10-year projection horizon: