TOOLS

DCF Fair Value Calculator

Calculate the intrinsic value of any stock using discounted cash flow analysis. Adjust assumptions to see how they impact fair value.

COMPANY DATA

Annual, in billions
$B
In billions
B
Per share
$

YOUR ASSUMPTIONS

Projected
%
Required return
%
yrs
Perpetuity
%

YOUR DCF RESULT

CALCULATED FAIR VALUE

$236.67

57.7% upsideUNDERVALUED

MARKET

$100.00

YOUR DCF

$236.67

MARGIN

$136.67

VALUE BREAKDOWN

PV of Projected Cash Flows$100.0B
PV of Terminal Value
$136.7B58% of total
Total Enterprise Value$236.7B
÷ Shares Outstanding1B
Fair Value Per Share$236.67

SENSITIVITY CHECK

Try adjusting growth rate by ±2% and discount rate by ±1% to see how sensitive your fair value is to assumptions.

HOW TO USE THIS CALCULATOR

WHERE TO FIND FCF

Look up the company annual Free Cash Flow in their financial statements or on financial data sites. Use the trailing twelve months figure.

GROWTH RATE

Use the historical 5-year FCF growth rate as a starting point. Be conservative for large companies — sustained growth above 15% is rare.

DISCOUNT RATE

8-10% for large stable blue-chip companies. 10-12% for mid-caps. 12-15% for unprofitable or high-risk growth stocks.

TERMINAL GROWTH

Should not exceed long-term GDP growth (2-3%). This is the most sensitive input — even 0.5% change can move fair value by 20% or more.

GET ALERTS

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ABOUT DCF ANALYSIS

Understanding Discounted Cash Flow

Discounted Cash Flow (DCF) analysis is the gold standard of fundamental stock valuation. It calculates what a business is worth today based on projections of how much cash it will generate in the future, adjusted for the time value of money.

This calculator projects free cash flow forward using your growth rate assumption, then discounts each year back to present value using your discount rate. It also calculates a terminal value representing all cash flows beyond the projection period, assuming perpetual growth at your terminal rate.

The sum of discounted cash flows and terminal value equals the enterprise value. Dividing by shares outstanding gives you fair value per share. Compare this to the current market price to assess whether a stock is overvalued or undervalued.

Fair Price Index uses DCF analysis as 50% of its blended valuation model for 37,000+ stocks worldwide, combined with relative valuation and analyst consensus for a more robust fair price estimate.

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This calculator is for educational purposes only and does not constitute financial advice. All calculations are based on user inputs and simplified assumptions. Actual fair values may differ. Always do your own research before investing.