Estimate a company's intrinsic value using discounted cash flow analysis. Educational only — not financial advice.
Inputs
Cash flow
Growth assumptions
10%
5%
2.5%
Discount rate
10%
How DCF works
A DCF values a company by estimating all future free cash flows and discounting them back to today's value. A pound earned in 10 years is worth less than a pound today — the discount rate captures that.
Terminal value represents the value of all cash flows beyond year 10, calculated as a growing perpetuity.
Discount rate is your required return (WACC). Higher = more conservative. 8–12% is typical for equities.
This model uses simplified assumptions. Real DCF analysis requires detailed financial modelling. Results are illustrative and educational only — not financial advice.
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Enter free cash flow and shares outstanding to calculate intrinsic value.
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