DCF Valuation Calculator (FCFF, FCFE, Reverse DCF)

Discounted Cash Flow (DCF) Valuation

A DCF estimates the intrinsic value of a business as the present value of the free cash flows it is expected to generate. This tool is fully modular and transparent: it asks for your methodological choices first, then only the parameters those choices require. Nothing is hardcoded: every market and company figure is your input.

Variant: FCFF discounted at the WACC (→ Enterprise Value), FCFE at the cost of equity (→ Equity Value), or APV (unlevered flows at Ru + tax shields).
Terminal value: Gordon perpetuity, the McKinsey value-driver formula, or an exit multiple.
Sensitivity: a two-way table showing how the value moves with the WACC and the perpetual growth, and how much of the value rests on the terminal value.
Reverse DCF: invert the model to read what growth, margin or advantage period the current market price is implicitly pricing in (a single implied value, or a two-lever iso-value frontier).
Guided setup: an optional panel that fills in suggested values from sector and country tables and narrows the sliders, which you then adjust. The suggested values are transparent priors, not fixed defaults.

Cost of capital inputs (equity risk premium, tax rate, country risk premium) come from the country tables published by Professor Aswath Damodaran (Stern NYU). See Country Default Spreads and Risk Premiums for aggregated, contextual and up to date figures by country, also linked on the Vibe Check page.

The market and company figures you enter are assumptions, not facts. This tool is for education and analysis and is not investment advice.

1 · Methodology (Fase A)

Choose the approach first — only the parameters these choices activate are shown below. Defaults are pre-selected methods, never fixed market values.

iWhich cash flow you discount. FCFF (to the firm) uses the WACC and gives Enterprise Value; FCFE (to equity) uses the cost of equity and gives Equity Value; APV values unlevered flows at Ru and adds the tax shields separately.DCF variantiHow value beyond the explicit horizon is estimated. Gordon = a perpetuity growing at g; Value-driver = ties growth to the return on new capital (RONIC); Exit multiple = an EV/EBITDA or EV/EBIT multiple on the final year.Terminal valueiHow the required return on equity is built. CAPM = Rf + beta·ERP; Build-up adds size and specific-risk premia (for private firms); Multifactor (Fama-French) sums factor exposures × factor premia.Cost of equityiHow beta is estimated. Raw = historical regression beta; Blume = 0.67·raw + 0.33 (pulled toward 1); Bottom-up = unlever comparables' betas, average, and relever at your target D/E.BetaiHow the pre-tax cost of debt is set. Market YTM = the yield on the debt; Rf + spread = risk-free plus a credit spread; Interest / book debt = interest expense divided by average debt.Cost of debtiThe E/V and D/V weights in the WACC. Market values (current); Target structure (long-run policy); or Sector average. Weights must sum to 100%.Capital weightsiWhether operating profit is entered as an EBIT margin, or as an EBITDA margin from which D&A is subtracted. Equivalent if consistent — it only changes which row you fill in.FCFF constructioniWhen cash flows are assumed to arrive. Year-end discounts at t; Mid-year at t − 0.5 (cash spread through the year), which raises present values slightly.Discount convention

2 · Horizon & operating drivers

Per-year drivers are entered as a single value applied to every explicit year (constant assumption). Click a value box to type an exact number.

iHow many years you project cash flows explicitly before the terminal value takes over — usually 5–10, until the business reaches a steady state.Explicit years N 📅

5 yr

1 yr15 yr

iRevenue in the base year (year 0), in your chosen currency. Every projected year grows from this figure. Type any value in the box for large companies.Base-year revenue 💶

1000

020000

iEffective corporate tax rate. The same rate is used in the FCFF, in the after-tax cost of debt, and in the interest tax shields.Tax rate 🧾

25%

0%50%

iAnnual revenue growth applied to each explicit year. The main driver of the top-line projection.Revenue growth / yr 📈

-20%50%

iOperating margin: EBIT as a percentage of revenue. Applied to each year to derive operating profit (NOPAT after tax).EBIT margin ⚙️

18%

0%60%

iDepreciation & amortisation per year — a non-cash cost added back in the FCFF.D&A / yr 🏭

05000

iCapital expenditure per year: cash invested in fixed assets, subtracted in the FCFF.CapEx / yr 🏗️

05000

iChange in net working capital per year. An increase ties up cash and is subtracted in the FCFF.ΔNWC / yr 🔄

-20002000

3 · Cost of equity

iThe risk-free rate, typically the yield on a 10-year government bond in the same currency as the cash flows.Risk-free rate (Rf) 🏦

0%12%

iThe extra return investors demand for holding equities over the risk-free asset (historical, implied or survey-based).Equity risk premium (ERP) 📊

0%12%

iSensitivity of the stock to the market: 1 = moves with the market, >1 = more volatile, <1 = defensive.Beta (raw) 📐

1.1

4 · Cost of debt

iThe yield to maturity the market demands on the company's debt (pre-tax). The WACC uses it after tax.Pre-tax cost of debt (YTM) 💵

0%15%

5 · Capital-structure weights

iMarket value of equity (market capitalisation). Sets the equity weight E/V in the WACC.Equity market value 🟦

800

0100000

iMarket value of debt. Sets the debt weight D/V in the WACC.Debt market value 🟥

200

0100000

6 · Terminal value

iGrowth of cash flows forever, beyond the explicit horizon. Must be below the discount rate and no higher than long-run nominal GDP.Perpetual growth g ♾️

0%6%

iCoherence ceiling for perpetual growth (e.g. long-run nominal GDP or expected inflation). A warning fires if g exceeds it.Long-run g ceiling 🧱

0%8%

7 · Enterprise → Equity bridge

At the valuation date. With FCFE the net debt is not subtracted (the value is already equity).

iTotal financial debt at the valuation date. Net of cash, it is subtracted to go from Enterprise to Equity value.Total financial debt 🏦

200

0100000

iCash & equivalents at the valuation date. Net financial position (PFN) = debt − cash.Cash & equivalents 💰

0100000

iNon-controlling interests in consolidated subsidiaries, subtracted in the bridge to equity.Minority interests 👥

050000

iPreferred stock, a claim senior to common equity, subtracted in the bridge.Preferred shares 🏷️

050000

iUnfunded pension obligations, a debt-like claim subtracted in the bridge.Pension deficit 👴

050000

iValue of non-consolidated associates / minority investments, added in the bridge.Associates (+) 🤝

050000

iAny other item needed to reconcile Enterprise and Equity value, entered with its own sign.Other bridge items (±) ±

-5000050000

iNumber of shares outstanding (use the diluted count for a diluted per-share value). Equity value is divided by this.Shares outstanding 🧾

100

1100000

Fill in the parameters and run the valuation to see results.

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