DCF Valuation Calculator
Value a business by discounting its forecast free cash flows and terminal value back to today.
DCF Valuation Calculator
Most recent annual FCF. Year 1 = this × (1 + year 1 growth).
FCF Growth per Year
Must be lower than the discount rate.
Use a negative number if the business holds net cash.
Enterprise Value
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PV of Forecast FCF
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PV of Terminal Value
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Forecast / Terminal Share
Less: Net Debt
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Equity Value
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Value per Share
Where the value comes from
Present value by year (blue) and terminal value (green)
Forecast & Discounting
| Year | Growth / multiple | Cash flow (₹) | Discount factor | Present value (₹) |
|---|
Sensitivity: Equity Value
Discount rate (rows) against terminal growth or exit multiple (columns)
Assumptions & method
- Explicit forecast: FCFₜ = FCFₜ₋₁ × (1 + gₜ), starting from the year 0 free cash flow you enter, with a separate growth rate for each year.
- Timing: each cash flow arrives at the end of its year and is discounted by (1 + r)^t. No mid-year convention is applied.
- Terminal value (perpetual growth): TV = FCFₙ × (1 + g) ÷ (r − g), valued at the end of the final forecast year. It requires g < r.
- Terminal value (exit multiple): TV = FCFₙ × multiple. The multiple is an assumption about how the business could be valued at the end of the forecast.
- Enterprise value = PV of forecast FCF + PV of terminal value. Equity value = enterprise value − net debt. Value per share = equity value ÷ shares, when shares are entered.
- The discount rate is a single constant annual rate. Taxes are assumed to be already reflected in the free cash flow you enter. Minority interests, preferred stock and other claims are not modelled.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
What is a DCF valuation?
A discounted cash flow valuation says a business is worth the cash it can generate for its investors, adjusted for timing and risk. You forecast free cash flow for several years, estimate what the business is worth at the end of the forecast (the terminal value), and discount all of it back at a rate that reflects risk. The method is transparent but sensitive: small changes in the discount rate or terminal assumptions can move the answer a lot, which is why the page shows what share of value sits in the terminal value and a sensitivity grid. Use it to test assumptions, not to produce a single “correct” price.