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# Discounted Cash Flow Calculator

Make use of this calculator to compute the discounted cash flow based on FCFF and EPS methods.

DCF Method:

DCF Using FCFF

FCFF 1



FCFF 2

Net Debt

Cash:

$Outstanding Debt:$

Growth And Discount Rate

Perpetual Growth:

%

WACC:

%

Shares And Its Market Value

Outstanding Shares:

Share Price:

$DCF using EPS Earnings Per Share:$

Discount Rate:

%

Predictable Growth

Growth Rate:

%

Over The Next...

Over The Next...

yrs
mos

Terminal Growth

Terminal Growth Rate:

%

Over The Next...

Over The Next...

yrs
mos

Table of Content

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Discounted Cash Flow Calculator calculates the discounted present value of future cash flow for a business, stock investment, house purchase, etc. It is more appropriate when future conditions are variable and there is slow terminal growth.

## What Does Discounted Cash Flow Means?

“DCF (Discounted Cash Flow) is a method employed to access an investment through the analysis of its expected future cash flow”
The discounted cash flow is used to analyze the desirability of an investment opportunity by considering projected future income. For evaluating the investment opportunities, range from 10% to 20% reflecting the investorâ€™s expected rate of return.

## DCF Formula:

The discounted cash flow formula equals the sum of all discounted cash flow from the power of different time periods.

$$DCF = \frac{CF_1}{(1+r)^1} + \frac{CF_2}{(1+r)^2} + \frac{CF_3}{(1+r)^3} + \ldots + \frac{CF_n}{(1+r)^n}$$

Where:

• $$CF_1, CF_2, CF_3, \ldots, CF_n$$ = Expected cash flows at different time periods e.g: year 1, year 2, â€¦
• (r) = Discount rate represents the rate of return required by investors or the cost of capital.

## How Do You Calculate DCF (Discounted Cash Flow)?

To calculate the discounted cash flow estimate the future cash flow of investors and then discount them back to the present value using the discounted cash flow calculator.

### Practical Example:

Consider an investment opportunity in a manufacturing company that projects annual cash flows as follows:

• Year 1 = $100,000 • Year 2 =$120,000

## Steps To Use The Calculator:

• Select the DCF method
• Put the values accordingly
• Press on calculate

### Outputs:

• Growth value
• Terminal value
• Total Intrinsic Value
• Value Of The Firm
• Value Of The Equity Equal
• Fair Value Per Share
• Percentage of overvalued company