🔍 Intrinsic Value Calculator
Estimate a company’s intrinsic value using a simplified discounted cash flow (DCF) model based on projected free cash flow growth.
What is intrinsic value?
Intrinsic value is an estimate of what a company is really worth, based on its projected future cash flows discounted back to today’s dollars, rather than its current market price. This calculator uses a simplified discounted cash flow (DCF) approach.
The formula
The calculator grows your current free cash flow at the expected growth rate for the projection period, discounts each year’s cash flow back to present value using the discount rate, adds a terminal value (representing all cash flows beyond the projection period, using the Gordon Growth formula), and divides the total enterprise value by shares outstanding.
This tool is for general educational purposes. DCF valuations are highly sensitive to the growth and discount rate assumptions used, so small changes in inputs can produce very different results; this is not investment advice.