Intrinsic Value Calculator (DCF)

Calculate a stock's intrinsic value using Discounted Cash Flow (DCF) analysis, or use Reverse DCF to find the growth rate implied by the current stock price.

Current annual FCF (e.g., 1B = 1000000000)

Intrinsic Value Per Share

$358.24

Total Intrinsic Value

$35.82B

PV of FCFs

$12.87B

PV of Terminal Value

$22.95B

Terminal value represents 64.1% of total intrinsic value

How It Works

  1. 1Choose between DCF (calculate intrinsic value) or Reverse DCF (find implied growth rate).
  2. 2Enter the company's current Free Cash Flow (FCF) and shares outstanding.
  3. 3Set your assumptions: growth rate, discount rate, terminal growth rate, and projection years.
  4. 4For Reverse DCF, enter the current stock price instead of growth rate.
  5. 5Review the calculated intrinsic value or implied growth rate to assess if the stock is fairly valued.

Frequently Asked Questions

What is DCF (Discounted Cash Flow) analysis?
DCF analysis is a valuation method that estimates the present value of an investment based on its expected future cash flows. It discounts those future cash flows back to today's value using a discount rate, typically the weighted average cost of capital (WACC) or required rate of return.
What discount rate should I use?
A common approach is to use the company's WACC (Weighted Average Cost of Capital), typically ranging from 8-12% for most companies. For riskier investments, use a higher rate (12-15%+). The S&P 500 historical return of ~10% is often used as a baseline.
How do I estimate Free Cash Flow growth rate?
Look at the company's historical FCF growth, analyst estimates, industry growth rates, and the company's competitive position. Be conservative—most companies can't sustain high growth rates (20%+) for more than 5-10 years.
Why is terminal value so important in DCF?
Terminal value often represents 60-80% of the total DCF value because it captures all cash flows beyond the projection period (in perpetuity). This is why the terminal growth rate assumption is critical—even small changes significantly impact valuation.
What is Reverse DCF and when should I use it?
Reverse DCF works backwards from the current stock price to find what growth rate is 'priced in.' Use it to check if market expectations are realistic compared to historical growth and industry benchmarks.