Intrinsic Value Calculator (DCF Model)
Projected Free Cash Flow to Firm (FCFF)
Valuation Assumptions & Equity Details
Discount Rate & Growth:
Must be less than WACC and typically not higher than long-term nominal GDP growth.
Balance Sheet Adjustments & Shares:
If company has more cash than debt, enter this as a negative number (e.g., -10000000 for $10M net cash).
DCF Analysis Results for Your Company
Enter details in previous tabs and click "Calculate Intrinsic Value" to see the analysis.
Understanding Your DCF Valuation:
- The Discounted Cash Flow (DCF) model estimates a company's intrinsic value based on the present value of its expected future free cash flows to the firm (FCFF).
- Projected FCFFs: Your estimates of future cash generation by the company.
- Terminal Value (TV): Represents the value of all cash flows beyond the explicit projection period, calculated using the perpetual growth model. It often forms a significant part of the total value.
- WACC (Discount Rate): The Weighted Average Cost of Capital reflects the riskiness of the company and its cash flows. A higher WACC leads to a lower present value.
- Perpetual Growth Rate: The assumed long-term sustainable growth rate of FCFFs beyond the projection period. Must be less than WACC.
- Enterprise Value (EV): The sum of the present values of projected FCFFs and the present value of the Terminal Value. It represents the total value of the company's core business operations to all capital providers (debt and equity).
- Equity Value: EV minus Net Debt (Total Debt - Cash & Cash Equivalents). If the company has net cash, this effectively adds to the Equity Value.
- Intrinsic Value per Share: Equity Value divided by the number of shares outstanding. This can be compared to the current market price per share.