DCF Calculator

The first decision is what the cash-flow series represents. FCFF describes cash generated for the firm before financing distributions. The matching discount rate is WACC. Its discounted operating value is enterprise value; separately entered cash, investments and nonoperating assets are added, and debt is subtracted, to obtain equity. FCFE describes cash available to common shareholders after debt service and net borrowing. Its matching rate is cost of equity, and its discounted value already belongs to equity. Adding the same cash or subtracting the same debt again would mix two definitions.

The calculator therefore keeps separate inputs for the two modes. Switching to an unused FCFE model opens blank financial fields instead of treating the existing FCFF amount as equity cash flow. The builders also name their definitions: NOPAT for firm cash flow, common net income and net borrowing for equity cash flow. Check the source period, currency and treatment of financing before entering either series. A mathematical result cannot verify that the accounting inputs are comparable.

The forecast contains ten explicit years. Years 1–5 use Stage 1 growth and Years 6–10 use Stage 2 growth. An annual override replaces the cash flow for that year, including a finite signed or zero amount; later growth starts from that replacement. Blank removes an override. The annual editor shows its selected common input unit, while present-value columns remain in USD. A zero previous cash flow has no defined realized percentage growth, so that percentage is unavailable rather than invented.

Year-end timing discounts each explicit flow at its year number. Midyear timing uses year minus one half for those flows only. Terminal value remains dated at the end of Year 10. Gordon growth requires positive Year 10 cash flow and terminal growth below the matching rate. FCFF can instead use an entered Year 10 EBITDA and EV/EBITDA multiple. FCFE can use an entered equity terminal amount, including zero or a signed value. These terminal methods represent different assumptions and cannot be exchanged merely by changing a label.

A value of 100 compared with a price of 200 is 50% below that price because price is the denominator. The same difference is a −100% discount to modeled value because modeled value is the denominator. Neither percentage verifies a forecast or measures the probability of loss. When shares are absent, company equity value can remain available while per-share output and a reverse market-price target are unavailable. Signed negative equity is retained rather than silently replaced with zero.

The sensitivity view varies the active discount rate across columns. Gordon growth varies across rows; a non-Gordon terminal stays fixed. Selecting a cell inspects its values without rewriting the baseline. Saved scenarios show their entered assumptions and equity differences. Reverse valuation varies one named assumption at a time while holding the others, annual overrides and terminal basis fixed. The entered search interval must bracket a supported root, and the result must reproduce the target in a forward valuation. An unavailable search is not proof that no root exists outside that interval.

The Monte Carlo view is an illustration of chosen model uncertainty. It uses independent Normal shocks with fixed standard deviations of 3, 2, 1.5 and 0.5 percentage points for Stage 1 growth, Stage 2 growth, the matching discount rate and Gordon growth. The seed and number of trials are editable. There is no clipping to favorable ranges: invalid draws are counted separately, and valid negative outcomes remain in the distribution. Percentiles describe only the retained illustrative draws and are not calibrated confidence intervals or a security rating.

Exports retain annual cash flows, discount factors, terminal method and the equity bridge, with canonical numeric precision. A displayed rounded amount is not a replacement for that ledger. Normal calculations do not write financial inputs into a public URL. Share first displays a review, with financial inclusion optional. Remember inputs is a separate device-storage choice. A recognized prior saved record can restore without rewriting its original bytes or silently enabling new saving. Review the current model and disclosure before copying a link or using a scenario outside the calculator.