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Intrinsic Value (DCF) Calculator

Work out intrinsic value (dcf) instantly with clear inputs, formula shown and shareable results.

About Intrinsic Value (DCF) Calculator

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.

Formula

Two-stage DCF

V = Σ FCFₜ/(1+r)^t + [FCF₁₁/(r-g)] / (1+r)^10

Worked example

With the default values below, Intrinsic Value (DCF) Calculator returns Intrinsic Value of $99,625,712.50. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current Free Cash Flowminimum 0
5,000,000
Growth Rate For Ten Yearsaccepts -20–60 %
10 %
Discount Rateaccepts 1–40 %
12 %
Terminal Growth Rateaccepts 0–8 %
4 %

Results

Intrinsic Value
$99,625,712.50
Present Value Of The Ten-Year Forecast
$45,343,194.94
Present Value Of The Terminal Value
$54,282,517.56
Share Of Value In The Terminal Estimate
54.49%

Step by step

  1. 1Values used
  2. 2Two-stage DCF
  3. 3Intrinsic Value= 99,625,712.50
  4. 4Present Value Of The Ten-Year Forecast= 45,343,194.94
  5. 5Present Value Of The Terminal Value= 54,282,517.56
  6. 6Share Of Value In The Terminal Estimate= 54.49

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • 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.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

Why is the terminal value so large?

Because it captures every year after the forecast. Typically 60-80% of value, which is why the terminal growth assumption matters most.

What terminal growth is defensible?

No more than long-run nominal economic growth. Anything higher implies the firm eventually becomes the economy.

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