DCF Calculator: Forward Value + Reverse DCF
Project intrinsic value from your assumptions — then flip it: enter (or load) the market price to see the Stage 1 growth the price implies. New to DCF? Read the step-by-step DCF valuation guide first.
Tip: open with a ticker, e.g. /tools/dcf-calculator?symbol=AAPL, or from a valuation page.
Operating cash flow minus CapEx — reinvestment is already subtracted here.
Your near-term thesis. Check the company's history before going above ~20%.
Growth rarely stays high — competitors arrive, markets saturate.
Forever growth — keep at or below long-run GDP+inflation (~2–3%).
Your required return. Higher risk → higher rate → lower value.
Total debt minus cash. Negative means net cash (adds value).
Required for reverse DCF — the Stage 1 growth the market price implies.
Projected vs discounted cash flows
The gap between the bars is the cost of waiting — a dollar in year 10 is worth much less than a dollar today at 9% required return.
Sensitivity — intrinsic value per share
How wrong can you afford to be? Rows vary the discount rate, columns vary stage-1 growth. If the value collapses one cell away from yours, your thesis needs a margin of safety.
| WACC \ Growth | 6.0% | 9.0% | 12.0% | 15.0% | 18.0% |
|---|---|---|---|---|---|
| 7.00% | $302.36 | $344.62 | $391.63 | $443.78 | $501.5 |
| 8.00% | $244.95 | $278.67 | $316.14 | $357.69 | $403.64 |
| 9.00% | $205.34 | $233.17 | $264.09 | $298.34 | $336.19 |
| 10.00% | $176.39 | $199.95 | $226.09 | $255.03 | $286.98 |
| 11.00% | $154.35 | $174.65 | $197.16 | $222.07 | $249.56 |
How this DCF calculator works
The model projects free cash flow through two growth stages, then adds a terminal value for everything beyond the forecast horizon using the Gordon Growth formula. Each future cash flow is discounted back to today at your chosen rate, giving an enterprise value. Subtracting net debt yields equity value; dividing by shares outstanding gives intrinsic value per share.
Reverse DCF holds those same assumptions fixed except Stage 1 growth, and solves for the growth rate that makes model value equal the market price — so you can see whether the stock is pricing in faster or slower growth than you believe.
FAQ
What does a DCF calculator do?
It estimates what a business is worth today by projecting its future free cash flows and discounting them back to the present at your required rate of return. Divide the resulting equity value by shares outstanding and you get an intrinsic value per share to compare against the market price.
What is reverse DCF?
Reverse DCF starts from the current share price and solves for the Stage 1 growth rate the market is embedding, holding WACC, stage-2 growth, terminal growth, FCF, and shares fixed. Compare that implied growth to your own Stage 1 assumption.
What growth rate should I use?
Start from the company’s own history and analyst revenue expectations, then apply judgment: very few companies sustain more than 20% growth for five years. This tool uses two stages so you can model fast near-term growth fading to a mature rate.
How do I choose the discount rate (WACC)?
The discount rate is the annual return you require for the risk you are taking. A common approach is the company’s weighted average cost of capital — typically 7–10% for stable large caps and 10–14% for riskier businesses. Higher risk means a higher rate and a lower present value.
Why is so much of the value in the terminal value?
The terminal value captures all cash flows beyond your explicit forecast, compressed into one number. If it dominates the valuation (say, above 75%), your result rests mostly on the perpetual-growth assumption — treat it cautiously and check the sensitivity grid.