Finance calculator
DCF Calculator - Discounted Cash Flow Valuation
Estimate enterprise value, equity value, and value per share from free cash flow, growth, discount rate, terminal growth, net debt, and shares.
FormulaEnterprise value = sum(FCF_t / (1 + r)^t) + terminal value / (1 + r)^n
Formula
Discounted cash flow formula
DCF valuations are sensitive to discount rate, terminal growth, and cash-flow quality. Treat the result as a scenario, not a price target.
Enterprise value = sum(FCF_t / (1 + r)^t) + terminal value / (1 + r)^n
A 10,000 first-year FCF stream growing 5% for five years at a 10% discount rate plus terminal value gives an enterprise-value estimate.
SourcesThis calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
Sources and assumptions
Source notes
This calculator includes source notes, assumptions, and exclusions so the result is easier to verify before use.
- Effective year
- Current rules
- Last verified
- 2026-06-18
DCF valuations are sensitive to discount rate, terminal growth, and cash-flow quality. Treat the result as a scenario, not a price target.
Assumptions
- Free cash flow grows at the entered annual growth rate during the explicit forecast period.
- Terminal value uses a Gordon-growth method and requires discount rate to exceed terminal growth.
- Net debt is subtracted from enterprise value to estimate equity value.
Not included
- Detailed yearly forecasts, working-capital schedules, tax modeling, lease adjustments, minority interests, excess assets, scenario weighting, and investment advice.
FAQ7 common questions for this calculator.
FAQs
What is a DCF calculator used for?+
It estimates value by discounting expected future free cash flows back to today.
Why must discount rate exceed terminal growth?+
The Gordon-growth terminal formula divides by discount rate minus terminal growth, so the model breaks when terminal growth is equal to or higher than the discount rate.
Is DCF the same as market value?+
No. DCF is a model-based estimate. Market prices, transaction values, and audited valuations can differ.
How does the DCF Calculator calculate the result?+
For the DCF Calculator, it uses the Discounted cash flow formula: Enterprise value = sum(FCF_t / (1 + r)^t) + terminal value / (1 + r)^n. A 10,000 first-year FCF stream growing 5% for five years at a 10% discount rate plus terminal value gives an enterprise-value estimate.
What information do I need to use the DCF Calculator?+
For the DCF Calculator, enter free cash flow, growth, discount rate, terminal growth, net debt, and shares. Keep the units consistent with the calculator fields and compare your setup with the worked example on the page.
How accurate is the DCF Calculator?+
DCF Calculator is accurate for the rates, amounts, dates, and rules entered. It uses the Discounted cash flow formula shown on this page. Real products can differ because of fees, taxes, contract terms, or changing official thresholds.
What should I check before using the DCF Calculator result?+
For the DCF Calculator, check free cash flow, growth, discount rate, terminal growth, net debt, and shares, then compare the Discounted cash flow formula and worked example with the contract or source you will rely on. Fees, tax year, currency, and payment timing can change the final decision.
RelatedNearby finance calculators for the next step after DCF Calculator.
Finance guide
How to use the DCF Calculator
Estimate enterprise value, equity value, and value per share from free cash flow, growth, discount rate, terminal growth, net debt, and shares. The page also explains the discounted cash flow formula and shows a practical example: A 10,000 first-year FCF stream growing 5% for five years at a 10% discount rate plus terminal value gives an enterprise-value estimate.
- 1
Enter your details
Enter free cash flow, growth, discount rate, terminal growth, net debt, and shares, then complete any other fields shown in the calculator.
- 2
Check the calculation
Review the result alongside the discounted cash flow formula: Enterprise value = sum(FCF_t / (1 + r)^t) + terminal value / (1 + r)^n.
- 3
Compare scenarios
Change one or more inputs to see how they affect the DCF Calculator result before you use the estimate.