Stock Intrinsic Value Calculator

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Finance

Calculate stock intrinsic value using Discounted Cash Flow (DCF) method. Projects 5-year free cash flow, applies discount rate, and terminal value for value investing analysis.

Formula

PV = Σ(FCF/(1+r)^t) + (FCF5×(1+g)/(r-g)) / (1+r)^5; Per Share = Total Value ÷ Shares
  • Discount rate: typical 8-12% for stocks
  • Terminal growth: 2-3% conservative
  • Sensitive to growth/discount assumptions

Tech Company Valuation

Inputs
  • Year 1 FCF ($M): 10 $M
  • Year 2 FCF ($M): 11 $M
  • Year 3 FCF ($M): 12 $M
  • Year 4 FCF ($M): 13 $M
  • Year 5 FCF ($M): 14 $M
  • Discount Rate (%): 10 %
  • Terminal Growth Rate (%): 3 %
  • Shares Outstanding (M): 100 M

5-yr FCF PV $44.8M + TV $116M = $160.8M / 100 shares = $1,608/share intrinsic value.

Frequently asked questions

Is this accurate?
DCF is one valuation method. Use margin of safety and compare to market price.