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DCF Calculator
Estimate intrinsic value from free cash flow, growth, and discount rate.
Estimated Intrinsic Value
$176,666,666,667
Uses the single-stage Gordon Growth model — a simplification. Discount rate must exceed growth rate for a valid result.
A discounted cash flow (DCF) valuation estimates a company's intrinsic value as the present value of its future cash flows. This calculator uses the simplest version — the Gordon Growth model — which assumes a constant growth rate forever.
Professional DCF models usually project cash flows explicitly for 5–10 years before applying a terminal growth assumption, since assuming one constant growth rate forever is a significant simplification.
FAQ
What model does this use?
This uses the Gordon Growth (single-stage perpetuity) model: value = FCF × (1 + g) / (r − g), which assumes cash flow grows at a constant rate forever.
Why does the discount rate need to exceed the growth rate?
If growth equals or exceeds the discount rate, the formula implies infinite value, which isn't meaningful — real DCF models typically use multi-stage growth assumptions to avoid this.