Stock DCF Valuation Calculator
Calculate intrinsic stock value using discounted cash flow analysis
About this calculator
The Stock DCF Valuation Calculator determines a stock's intrinsic value using discounted cash flow analysis, a fundamental valuation method preferred by professional investors. By projecting future cash flows and discounting them to present value, this tool helps investors identify whether a stock is overvalued or undervalued compared to its current market price. This analysis is essential for making informed investment decisions and finding stocks trading below their true worth.
How to use
Enter the company's current free cash flow, expected growth rate, and discount rate (typically the weighted average cost of capital). Input the number of projection years and terminal growth rate. The calculator will project future cash flows, discount them to present value, and determine the stock's intrinsic value per share.
Frequently asked questions
What discount rate should I use for DCF analysis?
Use the company's weighted average cost of capital (WACC), typically ranging from 8-12% for most established companies depending on risk profile.
How accurate are DCF valuations?
DCF accuracy depends on input assumptions. While not perfect, it provides a fundamental baseline for intrinsic value when combined with other analysis methods.
What's a reasonable terminal growth rate?
Terminal growth rates typically range from 2-4%, roughly matching long-term GDP growth, as no company can grow faster than the economy indefinitely.