DCF Calculator

Make smarter stock investing decisions using the discounted cash flow (DCF) model.

Project a company’s future cash flows using assumptions such as the expected cash flow growth rate and discount rate. These future cash flows are then discounted back to their present value using the discount rate. The sum of all discounted future cash flows represents the company’s estimated intrinsic value today.

A two stage model is commonly used in DCF valuations. The first stage, known as the growth stage, assumes the company grows at a higher rate over a defined period. Since such rapid growth is unlikely to continue indefinitely, the second stage, known as the terminal stage, applies a lower and more sustainable long term growth rate.