What is a Discounted Cash Flow (DCF) model?

A DCF model estimates the intrinsic value of a company by projecting its future free cash flows and discounting them back to present value using a discount rate (typically WACC). It answers: "What is this business worth today based on the cash it will generate?"

What discount rate should I use?

The discount rate represents your required rate of return and typically equals the company's Weighted Average Cost of Capital (WACC). For most publicly traded companies, 8-12% is common. Higher-risk companies warrant higher discount rates.

What is the terminal growth rate?

The terminal growth rate is the rate at which the company's free cash flow is assumed to grow forever after the projection period. It should be at or below the long-term GDP growth rate (typically 2-3%).

How accurate are DCF models?

DCF models are only as accurate as their inputs. Small changes in growth rate or discount rate can significantly change the result. That's why ValueMarkers provides a sensitivity table showing how the valuation changes across different assumptions.

How is this different from the full ValueMarkers DCF?

This free calculator uses manual inputs. The full ValueMarkers platform auto-populates FCF, growth rates, and WACC from 30 years of financial data for 100,000+ stocks, and includes adjustments for net debt, minority interests, and equity investments.

What is a DCF calculator?

A Discounted Cash Flow (DCF) calculator estimates the intrinsic value of a stock by projecting its future free cash flows and discounting them back to the present using a discount rate (typically WACC). It is an educational research tool, not investment advice.

What discount rate should I use in a DCF?

The discount rate should reflect the opportunity cost of capital — typically the company's Weighted Average Cost of Capital (WACC). For most large-cap US stocks this ranges from 7% to 12%. Use ValueMarkers' WACC Calculator to derive a ticker-specific rate.

What is terminal value in a DCF?

Terminal value captures the value of all cash flows beyond the explicit forecast period (typically 5–10 years). It is usually calculated with the Gordon Growth Model: Terminal Value = Final Year FCF × (1 + g) / (WACC − g), where g is a conservative long-run growth rate (e.g. 2–3%).

Is this DCF calculator free?

Yes. The DCF calculator on ValueMarkers is free to use with no account required. Auto-fill from any ticker is available on all plans including the free Explorer plan. Editable DCF inputs are available on the Analyst plan ($29/mo).

Free DCF Calculator

Calculate intrinsic value using a discounted cash flow model. Every input is visible and adjustable - no black boxes. Search for a stock to auto-fill or enter your assumptions manually.

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Assumptions

Current Free Cash Flow ($M)

FCF Growth Rate (%)

Discount Rate / WACC (%)

Terminal Growth Rate (%)

Projection Period (years)

Shares Outstanding (M)

Valuation Result

Intrinsic Value Per Share

$102.14

PV of Projected FCFs$45,263.06M

Terminal Value$147,526.54M

PV of Terminal Value$56,877.87M

Enterprise Value$102,140.93M

Simplified 2-stage DCF. Net debt, minority interests, and other adjustments not included.

Sensitivity Analysis

How intrinsic value per share changes with different growth and discount rate assumptions.

Growth ↓ / WACC →	8.0%	9.0%	10.0%	11.0%	12.0%
6.0%	$122.48	$102.67	$88.20	$77.17	$68.51
7.0%	$132.43	$110.74	$94.91	$82.86	$73.40
8.0%	$143.18	$119.45	$102.14	$88.98	$78.66
9.0%	$154.80	$128.85	$109.94	$95.57	$84.32
10.0%	$167.34	$138.98	$118.33	$102.67	$90.40

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