Intrinsic Value Calculator - DCF Stock Valuation
Estimate a stock’s value per share from cash flow growth and a discounted cash flow model.
Enter free cash flow, forecast growth, discount and terminal growth rates, forecast years, shares, and an optional market price.
Intrinsic Value Calculator - DCF Stock Valuation
Estimate a stock’s value per share from cash flow growth and a discounted cash flow model.
About Discounted Cash Flow Intrinsic Value
Intrinsic value is an estimate of what a business is worth from the cash it can distribute, not from last week’s ticker. A common way to build that estimate is a two-stage discounted cash flow: project free cash flow for a finite forecast, then attach a terminal value that represents cash flows after the forecast, and discount both at a required return.
The intrinsic value calculator grows the entered free cash flow at the growth rate through the forecast years, discounts each year’s flow at the discount rate, and adds the present value of a Gordon growth terminal value. Terminal value = final projected cash flow × (1 + terminal growth) ÷ (discount rate − terminal growth). Enterprise value is the sum of discounted forecast flows plus discounted terminal value. Dividing by shares outstanding produces value per share, which can be compared with the optional current price as upside or downside.
A $100,000 starting free cash flow, 5% growth, 10% discount rate, 2.5% terminal growth, five forecast years, and 10,000 shares produces about $151.89 per share in this model, with most of the level coming from terminal value. That concentration is typical of DCF and is why terminal growth must stay below the discount rate and, in practice, near long-run nominal economic growth.
DCF is sensitive to the discount rate, the length of high growth, and the quality of free cash flow. Using earnings instead of free cash flow, ignoring net debt, or treating share count as fully diluted versus basic can move the per-share figure by a wide margin. The calculator does not subtract net debt or add cash, so it is closer to a simplified equity or enterprise snapshot depending on whether you entered equity free cash flow or firm free cash flow. It is not a substitute for reading the 10-K, stress-testing margins, or using more than one valuation method.
Intrinsic Value Calculator Worked Examples
Use these worked scenarios to check inputs and understand how the estimate responds.
| Inputs | Result | Interpretation |
|---|---|---|
| $100,000 FCF, 5% growth, 10% discount, 2.5% terminal growth, 5 years, 10,000 shares | About $151.89 per share | The terminal value supplies much of the long-horizon estimate. |
| $500,000 FCF, 4% growth, 9% discount, 2% terminal growth, 10 years, 100,000 shares | About $84.53 per share | Lower discount rates materially raise a DCF result. |
| $1,000,000 FCF, 3% growth, 12% discount, 2% terminal growth, 8 years, 200,000 shares | About $54.04 per share | Use conservative assumptions when cash flows are uncertain. |
How to Estimate Intrinsic Value per Share
- Enter current free cash flow, expected growth, discount rate, terminal growth, forecast years, and shares outstanding.
- Optionally enter the current stock price so the calculator can show upside or downside versus intrinsic value.
- Select Calculate and review value per share, enterprise value, and terminal value together.
- Lower growth or raise the discount rate and recalculate to see how fragile the valuation is.
Intrinsic Value Calculator FAQ
Does the intrinsic value calculator use free cash flow to the firm or to equity?
It discounts whatever cash-flow number you enter. If you enter free cash flow to the firm, treat the result as an enterprise-style value and remember the model does not subtract net debt. If you enter free cash flow to equity, the per-share figure is closer to equity value.
Why must terminal growth stay below the discount rate?
The Gordon growth terminal value divides by (discount rate − terminal growth). If terminal growth is equal or higher, the denominator is zero or negative and the math no longer describes a finite continuing value.
Why is terminal value so large in a DCF?
Cash flows after the explicit forecast are capitalized into one number and then discounted. For a five- or ten-year forecast that continuing value often dominates, which is why terminal assumptions deserve as much scrutiny as near-term growth.
How should I choose the discount rate?
Many analysts start from a weighted average cost of capital or a required equity return such as CAPM. A higher discount rate cuts present value; using an equity rate on firm cash flow, or the reverse, misstates risk.
Is intrinsic value the same as market price?
No. Price is what buyers and sellers agree today. Intrinsic value is a model estimate. A gap can mean mispricing, missing cash, debt, or simply optimistic inputs.