Calculator

DCF Valuation Calculator

Project free cash flow, discount it back to today, and add a terminal value for everything beyond the projection period.

← Read the Discounted Cash Flow (DCF) Valuation concept page

Next year's free cash flow

Growth rate during projection period

Projection years

yrs

Discount rate (WACC)

Terminal growth rate (after projection period)

Estimated total value

$1,381,536.59

Sum of projected years

$430,766.87

Discounted terminal value

$950,769.72

How the math works

Year 1: $100,000.00 → $89,285.71 today
Year 2: $110,000.00 → $87,691.33 today
Year 3: $121,000.00 → $86,125.41 today
Year 4: $133,100.00 → $84,587.46 today
Year 5: $146,410.00 → $83,076.97 today
Terminal value: $1,675,581.11 → $950,769.72 today

The terminal value makes up 69% of the total estimated value here — a reminder that most of a DCF valuation usually rests on the single least certain assumption: what growth rate a business can sustain indefinitely.