Work out intrinsic value (dcf) instantly with clear inputs, formula shown and shareable results.
A discounted cash flow values a business as the present value of a forecast period plus a terminal value using the Gordon growth formula. Reporting the terminal share is essential: when most of the value sits beyond the forecast, the answer rests on assumptions rather than analysis.
Two-stage DCF
V = Σ FCFₜ/(1+r)^t + [FCF₁₁/(r-g)] / (1+r)^10
Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
Because it captures every year after the forecast. Typically 60-80% of value, which is why the terminal growth assumption matters most.
No more than long-run nominal economic growth. Anything higher implies the firm eventually becomes the economy.