Calculator Inputs
Use the form below to estimate enterprise value, equity value, and intrinsic value per share through a discounted cash flow approach.
Example Data Table
| Input | Example Value | Meaning |
|---|---|---|
| Starting Revenue | $100,000,000 | Base annual revenue before projections begin. |
| Revenue Growth Rate | 8% | Expected yearly revenue increase. |
| Operating Margin | 18% | Operating profit as a share of revenue. |
| Discount Rate | 10% | Required return used to discount future cash flows. |
| Terminal Growth Rate | 3% | Long-run growth assumption after forecast years. |
| Shares Outstanding | 12,000,000 | Total shares used for per-share value. |
Formula Used
1. Revenue Projection: Revenue for each future year equals previous revenue multiplied by (1 + growth rate).
2. EBIT: EBIT equals projected revenue multiplied by operating margin.
3. NOPAT: NOPAT equals EBIT multiplied by (1 - tax rate).
4. FCFF: Free cash flow to firm equals NOPAT + Depreciation - Capex - Net Working Capital Investment.
5. Present Value: Each FCFF is discounted by (1 + discount rate)^year.
6. Terminal Value: Terminal value equals Final FCFF × (1 + terminal growth) / (discount rate - terminal growth).
7. Enterprise Value: Enterprise value equals total present value of forecast FCFF plus discounted terminal value.
8. Equity Value: Equity value equals Enterprise Value + Cash - Debt.
9. Intrinsic Value Per Share: Divide equity value by shares outstanding.
How to Use This Calculator
- Enter the company’s current annual revenue.
- Add your expected growth, operating margin, and tax assumptions.
- Enter depreciation, capital expenditure, and working capital percentages.
- Select the number of forecast years.
- Enter discount rate and terminal growth rate carefully.
- Provide cash, debt, shares outstanding, and current market price.
- Press the calculate button to view results above the form.
- Review the chart, forecast table, and sensitivity table.
- Use the CSV or PDF buttons to export results.
Frequently Asked Questions
1. What does this equity valuation calculator estimate?
It estimates enterprise value, equity value, and intrinsic value per share using projected free cash flow to firm and a terminal value approach.
2. Why is the discount rate important?
The discount rate reflects required return and risk. A higher rate reduces the present value of future cash flows and usually lowers fair value.
3. Why must discount rate exceed terminal growth?
The terminal value formula divides by the gap between discount rate and terminal growth. If that gap is zero or negative, valuation becomes invalid.
4. What is FCFF in this model?
FCFF means free cash flow to firm. It measures cash available to all capital providers after operations, taxes, reinvestment, and working capital needs.
5. How does debt affect equity value?
Debt reduces the value left for shareholders. The calculator subtracts total debt and adds cash when moving from enterprise value to equity value.
6. Can I use this for mature companies?
Yes. Mature firms often suit DCF well, especially when growth, margins, reinvestment, and capital structure can be modeled with reasonable confidence.
7. What does upside or downside show?
It compares calculated intrinsic value per share with the current market price. Positive values suggest upside, while negative values suggest downside.
8. Should I rely on one scenario only?
No. Valuation depends heavily on assumptions. Compare multiple growth, margin, and discount scenarios to understand best, base, and worst cases.