DCF and reverse DCF calculator
A discounted cash flow model adds up future free cash flow in today's money. You choose the growth, the discount rate and the terminal growth; the calculator shows what they add up to per share, how much the answer moves when the rates change, and, the other way round, the yearly growth a share price takes for granted.
Or type your own figures
Money amounts in millions of any one currency; the share price in the same currency.
Your assumptions
your own figuresGrowth usually slows as a company gets bigger.
For ever, so it is usually kept at or below long-run growth of the economy, often 0–3%.
The yearly return you require: a risk-free rate plus a premium for risk. Higher means later cash counts for less.
Negative means more cash than debt.
Type the share price.
Present value per share, with your assumptions
170.93
Starting from 100.0M of free cash flow, growing 5.0% a year for five years, 3.0% for the next five and 2.0% after that, all discounted at 9.0%.
- Years 1–10, discounted
- 798.7M
- After year 10, discounted
- 910.7M
- Minus net debt
- 0.0M
- For shareholders
- 1.71B
- Divided by shares
- 10.0M
What the price implies
Enter a share price to see the growth it implies.
Sensitivity: value per share
Rows: terminal growth. Columns: discount rate. Other assumptions as entered.
| g \ r | 7% | 8% | 9% | 10% | 11% |
|---|---|---|---|---|---|
| 1.0% | 214.52 | 182.63 | 158.77 | 140.27 | 125.51 |
| 1.5% | 226.71 | 190.76 | 164.45 | 144.37 | 128.55 |
| 2.0% | 241.34 | 200.25 | 170.93 | 148.98 | 131.94 |
| 2.5% | 259.23 | 211.46 | 178.42 | 154.21 | 135.72 |
| 3.0% | 281.58 | 224.92 | 187.15 | 160.19 | 139.97 |
“—”: terminal growth at or above the discount rate has no finite answer.
Year by year
| Year | Growth | Free cash flow | Discount factor | Discounted |
|---|---|---|---|---|
| 1 | 5.0% | 105.0M | 0.917 | 96.3M |
| 2 | 5.0% | 110.3M | 0.842 | 92.8M |
| 3 | 5.0% | 115.8M | 0.772 | 89.4M |
| 4 | 5.0% | 121.6M | 0.708 | 86.1M |
| 5 | 5.0% | 127.6M | 0.650 | 82.9M |
| 6 | 3.0% | 131.5M | 0.596 | 78.4M |
| 7 | 3.0% | 135.4M | 0.547 | 74.1M |
| 8 | 3.0% | 139.5M | 0.502 | 70.0M |
| 9 | 3.0% | 143.6M | 0.460 | 66.1M |
| 10 | 3.0% | 148.0M | 0.422 | 62.5M |
| After 10 | 2.0% | 2.16B | 0.422 | 910.7M |
Terminal value = free cash flow in year 10 × (1 + terminal growth) ÷ (discount rate − terminal growth). Amounts in millions.
The results are arithmetic on the assumptions you enter, not an estimate by EdgeScore of what any share is worth and not a price target. For information and education only, not investment advice.