Inputs
Summary
Yearly detail
| Year | FCF | Discount factor | PV |
|---|
Sensitivity (r × g)
FAQ
Which assumptions move DCF the most?
Discount rate and terminal value assumptions typically drive the largest changes. Use TV ratio and the sensitivity table to inspect impact.
Must terminal growth be lower than discount rate?
Yes in the Gordon growth model. If growth is equal to or above discount rate, the formula is not valid.
What does exit multiple apply to here?
In this version, exit multiple is applied to the final forecast-year FCF.
Can I get equity value and value per share?
Yes. Enter net debt and shares outstanding to calculate equity value and implied value per share.
How should I handle negative FCF years?
Enter negative free cash flow years as negative numbers and keep the forecast order unchanged. Then review whether terminal value dominates the result, because early losses can be overwhelmed by aggressive long-term assumptions.
How to use DCF Calculator effectively
What this calculator does
This page discounts each forecast FCF row, adds terminal value from Gordon growth or an exit multiple, subtracts net debt, and converts equity value into an implied per-share value when shares are entered.
Input meaning and unit policy
Use one consistent currency and scale across every FCF, net debt, and share assumption. Discount rate and terminal growth are annual percentages, while the exit multiple is applied to the final forecast-year FCF.
Use-case sequence
Start with a base FCF forecast, choose the terminal value method, then compare discount rate and terminal growth in the sensitivity matrix. Save a CSV before changing assumptions so the baseline remains auditable.
Common mistakes to avoid
Do not let terminal growth equal or exceed discount rate in the Gordon model. Also check whether terminal value is a very large share of enterprise value, because that usually means the valuation depends more on long-term assumptions than on explicit FCF rows.
Interpretation guidance
Read enterprise value before net debt, equity value after net debt, and per-share value after shares outstanding. Use the sensitivity table to see whether a reasonable change in discount rate or terminal growth changes the decision.