Discounted Cash Flow Valuation Calculator

About this calculator

A discounted cash flow (DCF) valuation estimates what a business is worth today by projecting its future free cash flows and discounting each one back to present value using PV = CF ÷ (1 + r)ᵗ, where r is the discount rate (typically the weighted average cost of capital) and t is the number of years out. Beyond the explicit forecast period, a terminal value — usually estimated with the Gordon growth model, TV = CFₙ(1 + g) ÷ (r − g) — captures all cash flows beyond the forecast horizon, and its present value is added to the sum of the discounted forecast years to get the total enterprise value.

Equity analysts, investment bankers, and corporate finance teams use DCF as one of the core methods for valuing companies, private equity targets, and capital projects, because it ties value directly to expected cash generation rather than market comparables. Small changes to the discount rate or terminal growth assumption can swing the resulting valuation significantly, which is why analysts typically run the model across a range of assumptions rather than relying on a single output.