DCF Calculator – Discounted Cash Flow

FX Editorial 9. 3. 2026Last updated: 11. 3. 2026

This DCF calculator estimates the intrinsic (fair) value of a stock using the discounted cash flow method. It works for US stocks (NYSE, NASDAQ), European exchanges, and other global markets. It offers two modes — simple for a quick estimate with direct FCF input and advanced with a complete model built from revenue. In advanced mode, individual fields can be toggled off — disabled items are treated as zero. You can switch currencies (USD, EUR, GBP). Enter financial data as whole numbers directly from financial statements.

What is DCF and why should every investor care?

DCF (Discounted Cash Flow) is one of the most widely used methods to determine what a stock "should" be worth. The basic idea is simple — a company is worth as much as the cash it will generate in the future. The problem is that money received five years from now is not worth the same as money today (due to inflation, risk, and the lost opportunity to invest it). That is why future cash flows are "discounted" — converted to their present value.

The result of a DCF analysis is an estimate of the fair (intrinsic) price per share. This price can be compared with the current market price. If the fair price is significantly higher, the stock may be undervalued — and vice versa. The calculator works for US stocks traded on the NYSE and NASDAQ, European securities, and other global markets — simply switch the currency.

Simple mode

You only need to enter four key figures: company FCF (how much cash the company generates annually), expected FCF growth, WACC (the discount rate), and terminal growth. Add the number of shares, net debt, and optionally the current price. The whole calculation takes just seconds. All financial data (revenue, FCF, debt, shares outstanding) should be entered for the trailing twelve months (TTM) as whole numbers — just copy directly from the financial statements. The calculator formats them automatically with spaces for readability.

You can find a company's FCF on financial portals (Yahoo Finance, Macrotrends, Finviz) or in the annual report as "Free Cash Flow" — operating cash flow minus capital expenditures.

Advanced mode

If you want to customise the model further, switch to advanced mode. Here you enter the company's revenue, and the calculator progressively computes operating profit (EBIT), after-tax profit (NOPAT), adds back depreciation, subtracts investments, and accounts for changes in working capital. The result is FCFF — the company's free cash flow.

Each optional field (revenue growth, margin, tax, depreciation, CAPEX, NWC) can be toggled off with a checkbox. A disabled field is treated as zero and also disappears from the results table. Required fields are marked with a blue dot — the model cannot function without them.

Where to find the numbers for the calculator

The most common question from beginners. Here is an overview:

Revenue — income statement, first line. On Yahoo Finance, go to Financials → Income Statement. Use the trailing twelve months (TTM) figure and copy the whole number — e.g. revenue of 394,328,000,000 is entered as 394328000000, and the calculator will display 394 328 000 000.

EBIT margin — operating income divided by revenue. Some portals list it directly.

FCF — cash flow statement. On Yahoo Finance, go to Financials → Cash Flow → Free Cash Flow. Again for the trailing twelve months (TTM), copy the whole number.

WACC (discount rate) — there is no single correct source. A safe starting point is 10%. More precisely, it is calculated from the cost of equity (CAPM model) and cost of debt. Websites like gurufocus.com publish WACC for specific companies.

Shares outstanding — Yahoo Finance, Statistics → Shares Outstanding. Use the "diluted" count. Copy the whole number directly from the report — e.g. 15,115,000,000.

Net debt — total debt minus cash from the latest annual balance sheet. On Yahoo Finance, go to Financials → Balance Sheet. Copy the whole number.

What the results mean

Fair price per share is the main output of the model. It is calculated by taking the total company value (Enterprise Value), subtracting net debt, and dividing the result by the number of shares.

Enterprise Value is the sum of all discounted future cash flows including terminal value. It represents the total value of the company — for both shareholders and creditors.

Equity Value is Enterprise Value after subtracting net debt. This is the value that belongs to shareholders.

Upside / Downside shows by what percentage the calculated fair price is above or below the current market price. A positive number (green) suggests undervaluation, a negative one (red) suggests overvaluation.

% from terminal indicates what proportion of total value comes from the terminal value. If it exceeds 80%, the result heavily depends on long-term assumptions — which are the least reliable.

Gordon Growth vs. Exit Multiple

The calculator offers two methods for computing terminal value:

Gordon Growth Model is the more theoretical approach. It assumes the company will grow at a constant rate forever after the projection ends (typically 2–3%). The formula is simple: terminal value = next year's FCF divided by (WACC minus terminal growth). The key rule — terminal growth must be lower than WACC, otherwise the formula breaks down.

Exit Multiple is more practical. It takes the last projection year's EBITDA and multiplies it by the multiple at which similar companies typically trade in the industry. If technology companies sell at 15× EBITDA, you use that multiple. The advantage is that it directly reflects market reality.

Recommendation — calculate both variants. If they yield similar results, the input assumptions are probably reasonable. If they differ significantly, it is worth reconsidering them.

How to read the sensitivity table

The sensitivity table is perhaps the most useful part of the entire calculator. It shows how the fair price changes when you adjust WACC or terminal growth. Rows correspond to different WACC values, columns to different terminal growth values.

Green cells mean the stock is still undervalued at that combination. Red cells indicate overvaluation. The blue-highlighted cell corresponds to the currently entered values.

The key question — in how many cells is the stock undervalued? If most of the table is green, the valuation is relatively robust. If only a narrow strip is green under the most optimistic assumptions, the investment thesis is fragile.

Key limitations of the DCF model

DCF is a powerful tool, but it has clear limitations worth knowing about:

Sensitivity to inputs — a 1% change in WACC can shift the result by 20–30%. That is why sensitivity analysis and a conservative approach to assumptions are important.

Constant assumptions — the calculator uses the same margin and growth rate for the entire period. Real companies go through phases — rapid growth, slowdown, stabilisation. More sophisticated models use different assumptions for different years.

Terminal value — often accounts for 60–80% of the result, yet it captures cash flows 10+ years into the future. It is an estimate of an estimate.

What the model ignores — management quality, brand strength, competitive advantage, regulatory risks, macroeconomic environment, one-off events, potential acquisitions, or industry changes.

For which companies DCF does not work well — unprofitable startups, banks (specific balance sheet structure), heavily cyclical companies (steel, oil), companies in restructuring.

Frequently asked questions

What is a DCF model and what is it used for?

DCF (Discounted Cash Flow) is a valuation method that estimates a company's worth based on its future cash flows. In simple terms — how much cash the company will generate in the future and what that is worth today. The result is an estimate of the fair price per share, which can be compared with the current market price.

How do I know if a stock is undervalued?

If the DCF model calculates a fair price higher than the current trading price, the stock may be undervalued. For example, if the model shows a fair price of $250 and the stock trades at $180, there is a potential upside of 39%. However, it is important to factor in a margin of safety of at least 20–30% and not rely on a single model.

What is WACC and what value should I enter?

WACC (Weighted Average Cost of Capital) is the discount rate that reflects the investment risk. The riskier the company, the higher the WACC. For large stable companies (e.g. Coca-Cola, Johnson & Johnson) typically 7–9% is used. For mid-cap companies 9–12%. For small or fast-growing companies 12–15% or more. If you are unsure, 10% is a reasonable starting point.

Where can I find a company's FCF (free cash flow)?

FCF can be found in the company's cash flow statement, which is part of the annual report. It is calculated as operating cash flow minus capital expenditures (CAPEX). On financial portals such as Yahoo Finance, Finviz, or Macrotrends, FCF is usually listed directly. In the advanced mode of the calculator, you can compute FCF yourself from revenue and margins.

What is the difference between simple and advanced mode?

In simple mode, you enter the company's FCF directly along with its expected growth — just one number from the cash flow statement. In advanced mode, you build the model from scratch: you enter revenue, EBIT margin, tax rate, depreciation, CAPEX, and change in working capital. Advanced mode is more accurate because it allows you to better model the company's cost structure.

What is terminal value and why is it so important?

Terminal value captures the company's value after the projection period — from year 6 or 11 onwards, to infinity. It typically accounts for 60–80% of the total valuation, meaning a large part of the result depends on the assumption of how fast the company will grow in the distant future. That is why it is important to choose terminal growth conservatively (2–3%).

What terminal growth rate should I choose?

Terminal growth should match the long-term economic growth rate — typically 2–3%. The value must always be lower than WACC, otherwise the model would produce nonsensical results. For companies in developed countries, 2.5% is a reasonable choice. For companies in emerging markets, it may be slightly higher.

Gordon Growth or Exit Multiple — which is better?

The Gordon Growth Model assumes perpetual constant growth and is theoretically cleaner. The Exit Multiple multiplies the last year's EBITDA by a market multiple and is more practical — it reflects what the company could realistically be sold for. Ideally, calculate both variants and compare the results. If they differ significantly, the input assumptions may be inaccurate.

Why does DCF give me a completely different result than the trading price?

DCF is sensitive to input assumptions — even a small change in growth or discount rate can significantly shift the result. The market price also reflects sentiment, speculation, and short-term factors that DCF does not capture. If the difference is large, review your assumptions, try the sensitivity analysis, and compare with other valuation methods.

Can DCF be used for any company?

DCF works best for companies with stable and predictable cash flows — typically mature companies with a history of profits. For startups without positive FCF, banks (which have a specific cash flow structure), heavily cyclical companies, or companies in restructuring, DCF is less suitable. In these cases, it is better to use other methods (P/E, P/B, EV/EBITDA).

What does margin of safety mean?

Margin of safety is the difference between the calculated intrinsic value and the price at which you buy the stock. If DCF shows a fair price of $300, with a 30% margin of safety you would only buy the stock at $210. This cushion protects against errors in the model's input assumptions — and those are always present in DCF.

How do I read the sensitivity table?

The sensitivity table shows the fair price per share for various combinations of WACC (rows) and terminal growth (columns). Green cells mean the stock is undervalued at those assumptions (fair price is above the current market price). Red cells indicate overvaluation. The blue-highlighted cell corresponds to the currently entered values.

Practical tips

Be conservative — it is better to underestimate growth and overestimate risk. If the stock looks cheap even with conservative assumptions, that is a stronger signal than an optimistic model showing slight undervaluation.

Combine with other methods — compare the DCF result with P/E multiples, EV/EBITDA, and competitor valuations. If all methods point in the same direction, the conclusion is more reliable.

Update the model — input data changes with every quarterly report. A model built on year-old data can be significantly off.