DCF Calculator | Institute of Investing

Discounted Cash Flow (DCF) Calculator

Note: JavaScript is disabled. Calculation requires JS, but the formula framework is provided below for offline analysis:
Value = Σ [ FCF_t / (1 + WACC)^t ] + [ Terminal Value / (1 + WACC)ⁿ ]

Initial FCF ($)

Year 1 Free Cash Flow

Growth Rate (%)

Years 1-5 Growth

Discount Rate (WACC) (%)

Terminal Growth (%)

Perpetual growth (≤ GDP)

Shares Outstanding

Net Debt ($)

Total Debt - Cash

Valuation Output

Enterprise Value $0.00

Equity Value $0.00

Implied Share Price $0.00

Methodology

This calculator utilizes a 5-year explicit forecast period followed by a Terminal Value calculated via the Gordon Growth Model (Perpetuity Growth Method).

TV = [FCF₅ * (1 + g)] / (WACC - g)

Enterprise Value (EV) is the sum of the present value of the 5-year explicit cash flows plus the present value of the Terminal Value.

To find the Equity Value (and subsequently the per-share price), Net Debt must be subtracted from the Enterprise Value.

Data Dependencies

Need Discount Rate? Use WACC
Read full DCF Documentation