DCF Calculator
Estimate a stock's fair value with a two-stage discounted cash flow model. Enter the numbers below and the fair value updates instantly — add a current price to see how much upside (or downside) is on the table.
Annual FCF ÷ shares outstanding
How fast FCF grows in stage one
Your required return; ~9% is typical
Long-run growth after year 5 (≈2–3%)
Length of the high-growth stage
Add a price to see upside vs. fair value
Estimated fair value per share
$99.62
Fair value = the present value of 5 years of growing free cash flow plus a terminal value, discounted at your required return. Garbage in, garbage out — sensible inputs matter more than decimals.
Don't want to do this by hand?
We run this calculation weekly for every dividend payer and surface the ones trading below fair value.
See undervalued dividend stocksHow discounted cash flow works
A business is worth the cash it will return to its owners over its life, adjusted for the fact that a dollar in the future is worth less than a dollar today. DCF makes that idea concrete in three steps:
- Project free cash flow. Start from current free cash flow per share and grow it at your stage-one rate for the forecast period.
- Add a terminal value. Capture everything beyond the forecast with a Gordon-growth terminal value at a modest perpetual growth rate.
- Discount it back. Bring each year's cash and the terminal value to today using your discount rate, then sum. That sum is the intrinsic value per share.
The biggest lever is the growth rate, so be honest with it. A useful gut-check is to run the model in reverse: at the current price, what growth is the market already assuming? If that implied rate looks easy to beat, you may have found value — which is exactly the reverse-DCF read we show on every stock's fair-value page.
DCF calculator FAQ
- What is a DCF calculator?
- A discounted cash flow calculator estimates what a stock is worth today by projecting its future free cash flow and discounting it back to the present at your required rate of return. The result is an intrinsic fair value per share you can compare to the market price.
- What discount rate should I use?
- The discount rate is your required annual return. A common approach is the cost of equity from the CAPM model — roughly the risk-free rate plus the stock's beta times an equity risk premium. For most large-cap stocks that lands around 8–10%.
- What is terminal growth?
- Terminal growth is the rate at which you assume cash flow grows forever after the explicit forecast period. It should be conservative — no company outgrows the economy indefinitely — so 2–3% (roughly long-run GDP) is standard.
- Is DCF accurate?
- DCF is only as good as its inputs; small changes in growth or discount rate move the answer a lot. Treat it as one lens among several. That's why our per-stock fair value blends DCF with a dividend-discount model and an earnings multiple.
For informational purposes only — not investment advice.