Free tool
Stock Valuation Calculator
Estimate a stock's intrinsic value using a two-stage discounted cash flow (DCF) model. Enter free cash flow, expected growth, and your required rate of return to project a fair value per share.
Cash flow projection
| Year | Projected FCF | Discounted FCF |
|---|---|---|
| 1 | $1.08B | $990.83M |
| 2 | $1.17B | $981.74M |
| 3 | $1.26B | $972.73M |
| 4 | $1.36B | $963.80M |
| 5 | $1.47B | $954.96M |
| 6 | $1.59B | $946.20M |
| 7 | $1.71B | $937.52M |
| 8 | $1.85B | $928.92M |
| 9 | $2.00B | $920.40M |
| 10 | $2.16B | $911.95M |
How the DCF calculator works
A discounted cash flow model values a business as the present value of all the cash it is expected to generate. We project free cash flow forward at your assumed growth rate, discount each year back to today using the discount rate (your required rate of return or WACC), then add a terminal value capturing all cash flows beyond the projection window using the Gordon growth formula.
Picking sensible inputs
- Free cash flow: trailing twelve months from the cash flow statement (operating cash flow minus capex).
- Growth rate: a realistic 5–10 year growth estimate; most mature businesses fall in the 3%–12% range.
- Terminal growth: typically 2%–3%, near long-run GDP growth — never above the discount rate.
- Discount rate: the return you require; 8%–12% is common for equities, higher for risky names.
Disclaimer
This calculator is for educational purposes only and does not constitute investment advice. Valuations are highly sensitive to your input assumptions — small changes in growth or discount rate produce large changes in fair value.