Want to quickly estimate your business’s value?
Our free DCF calculator makes it easy.
No spreadsheets required.
Just input your numbers and get instant results using the same methodology trusted by Wall Street analysts.
⚠️Disclaimer
This calculator provides rough estimates only.
For investment decisions, please consult with qualified financial advisors.
Key Takeaways
- Instant calculations using Wall Street's preferred valuation method
- User-friendly interface with helpful tooltips for each input
- Conservative defaults based on market standards (8-15% discount rates)
- Detailed results showing forecast period and terminal values
- Free to use with no registration required
DCF Valuation Calculator
Current year's free cash flow
Expected annual growth rate for the forecast period
WACC or required rate of return (typically 8-15%)
Projection period (typically 5-10 years)
Long-term stable growth rate (typically 2-3%)
Results will appear here
How to Use This Calculator
- Enter Your Initial Cash Flow
- Use your most recent annual free cash flow
- Include operating income and other cash-generating activities
- Deduct working capital changes and capital expenditures
- Set Your Growth Rate
- Project your expected annual growth rate
- Be conservative - high growth is harder to sustain
- Consider industry averages and market conditions
- Choose a Discount Rate
- Typically ranges from 8-15%
- Higher risk requires higher rates
- Consider your:
- Industry risk level
- Company maturity
- Market conditions
- Capital structure
- Select Forecast Period
- Standard is 5-10 years
- Longer periods need stronger assumptions
- Match to your business planning horizon
- Input Terminal Growth Rate
- Usually 2-3% (near GDP growth)
- Should not exceed industry growth
- Be conservative for mature industries
Understanding Your Results
The calculator provides three key values:
- Present Value of Forecast Period
- Sum of discounted cash flows during explicit forecast
- Reflects near-term growth potential
- More certain than terminal value
- Present Value of Terminal Value
- Value of all cash flows beyond forecast period
- Usually 60-80% of total value
- Based on perpetual growth assumption
- Total Enterprise Value
- Combined value of forecast and terminal periods
- Represents total business value
- Excludes non-operating assets and debt
Important Notes
- This is a simplified DCF model
- Results are estimates only
- Additional factors to consider:
- Working capital needs
- Capital expenditures
- Debt obligations
- Market conditions
- Industry dynamics
Next Steps
For a complete valuation, consider:
- Running multiple scenarios
- Comparing to industry multiples
- Adjusting for company-specific factors
- Consulting with financial advisors
Want a more detailed analysis?
Read our comprehensive guide: Discounted Cash Flow Valuation
Additional Resources
Technical Details
This calculator uses:
- Gordon Growth Model for terminal value
- Time value of money principles
- Industry-standard formulas
- Conservative default values
