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Free DCF Calculator — Find Any Stock's Intrinsic Value

Calculate a stock's intrinsic value using a two-stage discounted cash flow model. Adjust growth rates, discount rates, and see sensitivity analysis — all free, no login required.

Enter Stock Data

High-growth phase. Default: 10%

Maturing phase. Default: 5%

Long-term growth (~GDP). Default: 2.5%

Your required return. Default: 10%

For reference only when using per-share values

Enter a stock price and EPS above to calculate intrinsic value.

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What Is a Discounted Cash Flow (DCF) Analysis?

A DCF analysis is one of the most fundamental methods for determining what a stock is actually worth — its intrinsic value — as opposed to what the market currently prices it at.

The concept is simple: a company is worth the sum of all the cash it will generate in the future, adjusted (discounted) to reflect what that future money is worth today. A dollar next year is worth less than a dollar today because you could invest today's dollar and earn a return.

Here's how it works:

  1. Estimate future cash flows — Project how much the company will earn each year based on a growth rate
  2. Discount to present value — Apply a discount rate (your required return) to convert future dollars to today's dollars
  3. Add a terminal value — Account for all cash flows beyond your projection period using a conservative long-term growth rate
  4. Sum it up — The total is the stock's estimated intrinsic value

If the intrinsic value is significantly higher than the current stock price, the stock may be undervalued — meaning you're potentially getting more than you're paying for. Warren Buffett has used DCF analysis for decades to find bargains in the market.

How to Use This DCF Calculator

Quick Start (30 Seconds)

  1. Enter the stock's current price and EPS (or FCF per share)
  2. Review and adjust the growth rates based on your expectations
  3. See the intrinsic value and whether the stock looks undervalued or overvalued

Customize Your Analysis

  • Growth Rate (Year 1–5): How fast do you think earnings will grow in the near term? Conservative = 5–8%, moderate = 8–15%, aggressive = 15%+
  • Growth Rate (Year 6–10): Growth typically slows as companies mature. 3–8% is common for established companies.
  • Discount Rate: Your required rate of return. 10% is standard. Use higher rates (12–15%) for riskier companies.
  • Terminal Growth Rate: Long-term growth after year 10. 2–3% (around GDP growth) is typical.

Pro Tips

  • Check the sensitivity table to see how small changes in assumptions affect the result
  • Toggle "Show me the math" to see the year-by-year breakdown
  • Compare your result against the current stock price — a margin of safety above 25% is where value investors get interested

Frequently Asked Questions

What is a DCF calculator?▼
A DCF (Discounted Cash Flow) calculator estimates a stock's intrinsic value by projecting future cash flows and discounting them back to present value. It helps investors determine whether a stock is trading above or below what it's fundamentally worth based on the company's expected future earnings.
What discount rate should I use in a DCF analysis?▼
Most investors use 8-12%. The discount rate represents your required rate of return — the minimum return you'd accept for the risk of owning the stock. A common approach is using 10% (the long-term stock market average return). Use higher rates (12-15%) for smaller or riskier companies and lower rates (8-9%) for stable blue chips.
How accurate is a DCF valuation?▼
A DCF is only as good as its assumptions. Small changes in growth rate or discount rate can significantly change the result — that's why we include a sensitivity table. DCF works best for companies with predictable, positive cash flows. It's less reliable for unprofitable startups, cyclical businesses, or companies undergoing major transitions. Use it as one tool among several, not as the sole basis for investment decisions.
What's the difference between EPS and FCF in DCF?▼
EPS (Earnings Per Share) reflects accounting profits, while FCF (Free Cash Flow) per share shows actual cash generated after capital expenditures. FCF is theoretically more accurate since it represents real cash available to shareholders, but research shows EPS often correlates better with stock prices. Our calculator lets you choose either.
What is a good margin of safety?▼
Value investors like Benjamin Graham and Warren Buffett typically look for a margin of safety of 25-50%. This means the intrinsic value should be 25-50% higher than the current stock price. A larger margin of safety provides a bigger cushion against errors in your assumptions or unforeseen business problems.

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