Corporate Finance Tool

DCF Calculator

Determine the intrinsic enterprise value of an asset using the Discounted Cash Flow methodology.

Current FCF (Year 0, ₹)

₹10,00,000

Y1-Y5 Growth Rate (%)

10%

Discount Rate (WACC %)

12%

Terminal Growth Rate (%)

2.5%

ENTERPRISE VALUE

₹1,45,98,360

PV of Cash Flows: ₹47,38,436PV of Terminal Value: ₹98,59,924

Understanding DCF Modeling

Your complete guide to Discounted Cash Flow.

What is Discounted Cash Flow (DCF)?

A Discounted Cash Flow (DCF) model is a valuation method used to estimate the value of an investment based on its expected future cash flows. DCF analysis attempts to figure out the value of an investment today, based on projections of how much money it will generate in the future.

The Mechanics of DCF

DCF rests on one fundamental premise: The Time Value of Money. A dollar today is worth more than a dollar tomorrow.

Forecast Period: A company’s cash flows are explicitly modeled over a 5 or 10-year period.
Terminal Value: Cash flows beyond the forecast period are captured using the perpetually constant 'Gordon Growth Model'.
Discount Rate: The WACC is used to bring future free cash flows back to today's present value.

Summing the Present Value of explicit cash flows plus the Present Value of the Terminal Value equals the Enterprise Value.

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