Our discounted cash flow (DCF) calculator lets you quickly calculate a company’s discounted cash flow using the 2-stage DCF model. This is a valuable tool for establishing the value of a potential investment.
How to Use the DCF Calculator
Once you fill in the data in all the fields the results shown below the calculator will automatically update.
Here’s a brief explanation of all inputs:
- Initial Cash Flow (Year 0) ($): Initial free cash flow that will represent the future expected cash flows of the company.
- Total Cash ($): Total cash and cash equivalents of the company.
- Total Debt ($): Total short-term and long-term debt of the company.
- Shares Outstanding: The total number of shares issued and actively held by stockholders.
- Current Share Price ($): The amount it would cost to buy one share in a company today.
- Expected Growth Rate (%): The rate of return during the growth stage of the investment.
- Growth Stage Duration (years): How many years do you expect the growth stage to last?
- Terminal Growth Rate (%): The rate of return during the terminal stage of the investment when the increase is significantly slower than the growth stage.
- Terminal Stage Duration (years): How many years do you expect the terminal stage to last?
- Discount Rate or Weighted Average Cost of Capital (WACC): The expected rate of return. If unsure, just use the company’s WACC.
Here’s what the results of the discounted cash flow calculator mean:
- The summary will calculate by what percentage is the stock currently overvalued or undervalued.
- Intrinsic Value: The fair value of a stock based on projected future cash flows.
- Company Value: The total value of the company after the projected period.