DCF calculator
Estimate a stock’s intrinsic value from free cash flow. The discounted-cash-flow calculator brings future cash flows back to today.
What is a DCF?
A discounted cash flow values a stock from the free cash flow the business is expected to earn. Money later is worth less today, so each cash flow is discounted at the WACC. What remains is intrinsic value per share.
Fair-value formula
Fair value = discounted free cash flows + discounted terminal value − net debt per share
How the DCF calculator works
Free cash flow per share grows each year at your growth rate. Each amount is discounted to today at the WACC. After the last year the calculator adds a terminal value: the final cash flow then grows only at the long-term rate and is discounted too. Net debt per share is subtracted. Enter net cash as negative debt.
Worked example
Nike on 1 October 2026: free cash flow of 1.47 dollars per share from the fiscal year ended May 2026, 0% growth, 9.2% WACC, 2.5% long-term growth, 10 years, 0.32 dollars of net cash per share from the 31 August 2026 balance sheet. Fair value: 19.00 dollars per share. The share price is 35.15 dollars.
Assumptions and notes
- Growth stays constant across the projection years.
- Terminal value uses Gordon growth. WACC has to sit above that rate.
- Every figure is per share. Buybacks, dilution, and one-off items are not modeled.
- The calculator is a model, not investment advice.
Sample results
Fair value per share at 2.5% long-term growth, 10 years, and no net debt.
| FCF per share | Growth | WACC | Fair value |
|---|---|---|---|
| 4.00 $ | 5 % | 8 % | 90.61 $ |
| 6.00 $ | 8 % | 9 % | 143.34 $ |
| 6.00 $ | 12 % | 9 % | 194.01 $ |
| 10.00 $ | 8 % | 10 % | 204.28 $ |
What is a stock DCF calculator?
It estimates intrinsic value by discounting future free cash flows to today at the WACC.
Which free cash flow should I enter?
Free cash flow per share: last year’s free cash flow divided by shares. Levered free cash flow fits an equity view.
What is WACC?
WACC is the rate used to discount future cash flows. A higher WACC lowers fair value.
Why must WACC exceed long-term growth?
Otherwise the Gordon terminal value breaks. A mature business grows more slowly than its cost of capital over the long run.
Is this a buy signal?
No. Fair value depends on your assumptions. A price below it only means the stock is cheaper than this model’s intrinsic value.