Tools

Intrinsic Value Calculator (DCF) — what is a stock really worth?

Simplified two-stage model: explicit FCF growth, then Gordon terminal value — enterprise value ÷ shares. Ignores net debt and other adjustments unless you fold them in yourself. Education only — not financial advice.

Quick framing

DCF discounts expected free cash flow to today, then adds a terminal value for cash flows beyond the forecast. Compare implied value per share to the market price — if the model is trustworthy and price is far below, some investors call that margin of safety. Models are wrong often; use ranges.

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Inputs

FCF and shares in millions (e.g. $500M FCF, 100M shares). Growth and rates as annual %.

Free cash flow ($M)Most recent annual FCF (cash flow statement).Growth rate (%)Expected annual growth during explicit period.Discount rate (%)Required return / cost of capital proxy.Terminal growth (%)Perpetual growth after forecast (often ~2–3%).Shares outstanding (M)Fully diluted if you want consistency.Projection yearsExplicit forecast length (e.g. 5–10).Current stock price ($, optional)For margin of safety vs model implied price.

Result

Fill inputs and tap “Calculate intrinsic value”.

When should you use this?

To stress-test fair value from cash-flow assumptions and compare to the quote — not as a single “true” price. Institutional DCFs layer on debt, equity bridges, and scenarios; this page is a learning template.

How it works

1
Enter cash flow
Start from recent annual free cash flow (Yahoo Finance, SEC filings, or your data vendor).
2
Set growth assumptions
Explicit growth for N years, then a lower terminal growth forever (must be below discount rate).
3
Read fair value
We discount explicit FCFs, add discounted terminal value, divide by shares. Optional: enter price for a quick margin-of-safety readout.

Model notes

FCF in year t = base FCF × (1 + growth)^t; terminal = Gordon on year N+1 FCF.
No cash / debt / minority interest — adjust EV yourself if needed.
High growth vs discount rate can dominate PV; always run sensitivity.

Frequently asked questions

Here it means the estimated present value of expected free cash flows, plus a terminal value, divided by shares — a textbook-style DCF sketch. Real valuations add net debt, dilution, working capital, and scenario work.