DCF Calculator 🧮

Estimate the **Intrinsic Value** of an investment by discounting its projected future cash flows back to their present value. A core method in fundamental analysis.

DCF Model Inputs

Discount Rate (WACC / Required Return - %):

Often the Weighted Average Cost of Capital (WACC).

Perpetual Growth Rate (%):

Expected cash flow growth after the forecast period.

Shares Outstanding (Millions):

Required for Per-Share Value.

Projected Free Cash Flow (FCF) ($ Millions)

Valuation Summary

Total Intrinsic Value (Net Present Value):

Terminal Value (PV)

Value of cash flows beyond the forecast period.

Intrinsic Value Per Share

If shares outstanding were provided.

Detailed Cash Flow Projection

Year	FCF ($M)	Discount Factor	PV of FCF ($M)

DCF Valuation Theory

The Discounted Cash Flow (DCF) method is based on the idea that the value of a company is the **sum of all its future cash flows, discounted back to the present day** at a required rate of return.

Core Formulas

1. Present Value (PV) of a single cash flow:
   PV = FCF / (1 + WACC)ᵗ
   (where 't' is the year)

2. Terminal Value (TV) - Gorbon Growth Model:
   TV_end = [ FCFₙ × (1 + g) ] / (WACC - g)
   (where 'g' is the perpetual growth rate)
   
3. Total Intrinsic Value:
   Intrinsic Value = ∑ (PV of FCF) + PV of TV

A positive difference between the Intrinsic Value Per Share and the current market price suggests the stock is **undervalued** and may be a good investment.