DCF (Discounted Cash Flow) Calculator
Value your business using future cash flow projections
Cash Flow Inputs
Enter your projected cash flow and growth assumptions
DCF Method: Values a business based on the present value of projected future cash flows. Lower discount rates increase valuation. Terminal value typically represents 60-80% of total value.
Understanding DCF Valuation
Key Components
- Free Cash Flow: Cash available after all expenses and investments
- Growth Rate: Expected annual cash flow increase
- Discount Rate (WACC): Required rate of return (typically 8-15%)
- Terminal Growth: Long-term sustainable growth (usually 2-3%)
Valuation Tips
- Use conservative growth assumptions for accuracy
- Higher discount rates reduce valuation
- Terminal value should not exceed 80% of total
- Compare with market multiples for validation