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DCF valuation calculator

Calculate the fair value of a company and of each share with discounted cash flow: free cash flow projection, terminal value, margin of safety and a present-value chart.

How to use

Fair value by discounted cash flow

Projected cash flow (back bar), what it is worth today (front bar) and the terminal value

Educational tool, not investment advice.

Available in: PortuguêsEnglish

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DCF valuation calculator: what it is for

Project the company's free cash flow for 5 or 10 years, discount each year to present value with the discount rate (WACC) and add the terminal value with the Gordon model. Subtracting net debt and dividing by the number of shares, the tool shows the fair value per share, the margin of safety against the current price and how much of the value depends on the terminal value. The chart compares projected cash flow with its present value year by year. Educational tool: results are estimates, not investment advice.

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How to use

  1. Enter free cash flow and growth.
  2. Set the discount rate and perpetual growth.
  3. Enter net debt, shares and price.

When to use it

  • Estimate the fair price of a stock.
  • Test optimistic and pessimistic scenarios.
  • Learn how DCF valuation works.

Frequently asked questions

How does DCF work?

Discounted cash flow projects the cash the company will generate over the next years (free cash flow), brings each amount to today's value with the discount rate and adds a terminal value for all years after the projection. The result is the enterprise value; subtracting net debt gives the equity value and the value per share.

Which discount rate should I use?

Usually the company's WACC (weighted average cost of capital), often between 8% and 12% a year for established companies, higher for riskier ones. The higher the rate, the lower the fair value.

What is the terminal value?

It is the value of the cash flows after the last projected year, calculated with the Gordon model: FCF × (1 + g) ÷ (rate − g), where g is the perpetual growth (usually close to long-term inflation). Perpetual growth must be lower than the discount rate.

Is the result the right share price?

No. DCF is very sensitive to assumptions: small changes in the rate or growth move the value a lot. Use it as a reference, compare scenarios and demand a margin of safety. It is not investment advice.

Is it really free?

Yes, 100% free. No sign-up, no subscription and no usage limits. All Tools123 are free.

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