DCF calculator — discounted cash flow valuation

Set revenue, growth, margin and reinvestment assumptions. The calculator builds the free cash flow forecast and discounts it at your WACC.

Revenue, last year

Revenue growth

EBIT margin

Tax rate

D&A, % of revenue

Capex, % of revenue

Net working capital, % of revenue

WACC

Terminal growth

Net debt

Debt minus cash; negative for net cash.

Shares outstanding

Mid-year convention

Treats each year's cash flow as arriving mid-year, so year t is discounted at t − 0.5. As in the course, the terminal value keeps the year-end factor of year N.

Enterprise value

1,635.2

Equity value

1,485.2

Value per share

29.70

Year	1	2	3	4	5
Revenue	864.0	933.1	1,007.8	1,088.4	1,175.5
EBIT	129.6	140.0	151.2	163.3	176.3
NOPAT	103.7	112.0	120.9	130.6	141.1
+ D&A	34.6	37.3	40.3	43.5	47.0
− Capex	43.2	46.7	50.4	54.4	58.8
− ΔNWC	6.4	6.9	7.5	8.1	8.7
Free cash flow	88.6	95.7	103.4	111.7	120.6
Discount period	1.0	2.0	3.0	4.0	5.0
Discount factor	0.9174	0.8417	0.7722	0.7084	0.6499
PV of FCF	81.3	80.6	79.8	79.1	78.4

Terminal value 1,901.7, discounted over 5 years to 1,236.0, is 75.6% of enterprise value. Most of the value depends on terminal assumptions — test WACC and growth carefully.

How it's calculated

Enterprise value

EV = Σ FCFₜ ÷ (1 + WACC)ᵗ + TVₙ ÷ (1 + WACC)ⁿ, TVₙ = FCFₙ × (1 + g) ÷ (WACC − g)

FCF: EBIT × (1 − t) + D&A − capex − ΔNWC
mid-year: discount year t at t − 0.5 and the Gordon TV at n − 0.5

Assumptions

Year-end discounting by default; constant growth, margin and reinvestment rates across the forecast.
With the mid-year convention, each year's cash flow is discounted at t − 0.5 and the Gordon terminal value at n − 0.5, because the perpetuity's cash flows also arrive mid-year. (An exit-multiple value is a point-in-time sale price and would stay at n.)
Terminal growth continues forever and is below WACC.

Limitations

A simplified single-scenario model — not a substitute for a full three-statement model.
Educational tool: not investment advice.

For education and planning. Results are estimates, not financial advice.