Calculator
DCF calculator (per share)
Present value of future free cash flow per share, using growth and discount rates you choose. Type your own numbers; nothing is sent anywhere.
The formula
Value per share = Σ FCFₜ / (1 + r)ᵗ for t = 1..N, plus [FCFₙ × (1 + gₜ) / (r − gₜ)] / (1 + r)ᴺ
A worked example
With the default inputs (free cash flow $5.00 per share, 8% growth for 5 years, 2.5% after that, 10% discount rate) the five yearly cash flows are discounted as shown, the terminal value is $100.40 at year 5, and the sum is $86.01 per share.
| Year | Cash flow per share | Present value |
|---|---|---|
| 1 | $5.40 | $4.91 |
| 2 | $5.83 | $4.82 |
| 3 | $6.30 | $4.73 |
| 4 | $6.80 | $4.65 |
| 5 | $7.35 | $4.56 |
| Terminal | $100.40 | $62.34 |
| Total | $86.01 |
How to read it
A discounted cash flow adds up the cash a business is assumed to generate, each year's amount reduced by the discount rate to reflect time. The last term is a terminal value that carries the final year's cash flow forward at a steady rate. The result depends heavily on the growth and discount rates, which are your assumptions, not facts; small changes move it a lot, and the terminal value is usually the largest part.
Educational, not investment advice. The result is arithmetic on the inputs you typed.
Using real company figures
Company pages show the EPS, book value per share and free cash flow per share from each company's latest annual report to the SEC, which you can copy into this calculator. Browse 487 companies or start the worksheet with a company.
Questions
Where do the growth numbers come from?
From you. We show the company's reported free cash flow per share on company pages, but we do not forecast growth.
Why must the discount rate be above terminal growth?
Otherwise the terminal value formula divides by zero or a negative number and the result has no meaning.
Is the output a fair price?
No. It is the arithmetic result of the assumptions you typed, nothing more. It is educational and not investment advice.
Other calculators
- Graham numberThe square root of 22.5 times earnings per share times book value per share.
- P/E ratioPrice divided by earnings per share, and its inverse, the earnings yield.
- Book value per shareShareholders' equity divided by shares, and the price-to-book ratio if you add a price.
- PEG ratioP/E divided by an expected annual earnings growth rate you enter.
- Dividend discount modelValue of a dividend that grows at a steady rate, discounted at the return you require.
- Free cash flow yieldFree cash flow per share as a percentage of a price you enter.
- Return on equityNet income divided by shareholders' equity.