Discounted Cash Flow (DCF) Calculator: Enterprise & Share Value

Discounted Cash Flow (DCF) Calculator

Estimate enterprise value from five annual free-cash-flow projections, a discount rate (WACC) and a terminal growth assumption. Add cash, debt and shares to estimate equity value and an indicative value per share.

DCF assumptions

Formatting only; no exchange-rate conversion.

Enter every cash flow, cash and debt in this same unit.

FCFF, after operating taxes and reinvestment; negative forecasts are allowed.

Must be positive because it anchors the growing-perpetuity terminal value.

Must be lower than WACC.

Choose independently from the currency amount unit.

Leave blank to omit the comparison to market price.

All amounts must use the same currency and reporting unit. The share unit can differ; it is converted mathematically when calculating value per share.

Formula used

PV of forecast = Σ [FCFF in year t ÷ (1 + WACC)t]

Terminal value = FCFF in year 5 × (1 + terminal growth) ÷ (WACC − terminal growth)

Enterprise value = PV of forecast + PV of terminal value; Equity value = enterprise value + cash − debt; Value per share = equity value in currency units ÷ diluted shares in actual shares.

The terminal value is discounted from the end of year 5. The model assumes annual year-end cash flows and a stable perpetual growth rate after year 5.

Checked example

With forecast FCFF of $80m, $88m, $96m, $103m and $110m; WACC of 9%; and terminal growth of 2.5%, the present value of the five forecast years is about $366.05m. Terminal value is about $1,734.62m, whose present value is about $1,127.38m. Estimated enterprise value is $1,493.43m. After $70m cash and $240m debt, equity value is about $1,323.43m. With 55m diluted shares, the indicative value is about $24.06 per share, or about 20.31% above a $20 reference price. Small differences may result from display rounding.

Assumptions and limits

  • This is a deterministic scenario, not a forecast, security recommendation or assurance of value.
  • Use unlevered free cash flow to the firm (FCFF), not levered free cash flow to equity (FCFE), for the enterprise-value method shown.
  • All yearly projections, cash and debt must match the same company, valuation date, currency and unit. Amounts accept up to two decimals and a maximum absolute value of 1 trillion in the selected unit.
  • WACC must be 0.01%–100%; terminal growth must be −50%–50% and below WACC. Year 5 FCFF must be positive. Shares must be positive; cash, debt and an optional reference price cannot be negative.
  • Taxes, debt repayment, leases, preferred claims, minority interests, stock-based compensation, dilution forecasts, mid-year convention, changing WACC and scenario uncertainty are not modeled separately.
  • Terminal value can dominate the result; review the explicit forecasts, WACC and perpetual growth rather than treating the output as precise.