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DCF calculator
A five-year discounted cash flow with a terminal value, returning an enterprise value and the sensitivity grid that matters more than the point estimate.
Inputs
Must be below WACC. Above 3% is hard to defend.
Enterprise value
US$22.8m
Indicative range US$19.4m – US$26.2m
- PV, explicit years
- 6.2
- PV, terminal value
- 16.6
- Terminal share
- 73%
Free cash flow build
| Year | Revenue | EBIT | Unlevered FCF | PV of FCF |
|---|---|---|---|---|
| Y1 | 12.5 | 2.3 | 1.1 | 1.0 |
| Y2 | 15.6 | 2.8 | 1.4 | 1.1 |
| Y3 | 19.5 | 3.5 | 1.7 | 1.2 |
| Y4 | 24.4 | 4.4 | 2.2 | 1.4 |
| Y5 | 30.5 | 5.5 | 2.7 | 1.5 |
Sensitivity: WACC × terminal growth
Enterprise value, US$m
| WACC ＼ g | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 10.0% | 26.7 | 28.0 | 29.6 | 31.3 | 33.3 |
| 11.0% | 23.6 | 24.6 | 25.8 | 27.1 | 28.6 |
| 12.0% | 21.1 | 21.9 | 22.8 | 23.8 | 24.9 |
| 13.0% | 19.0 | 19.7 | 20.4 | 21.2 | 22.0 |
| 14.0% | 17.3 | 17.8 | 18.4 | 19.0 | 19.7 |
How this calculation works
Revenue grows at your stated rate for five years. EBIT is revenue multiplied by your operating margin, taxed at 23%, giving net operating profit after tax. Capital expenditure is deducted as a percentage of revenue, producing unlevered free cash flow for each year. Each year's cash flow is discounted at your weighted average cost of capital.
Terminal value uses the perpetuity growth method: the final year's free cash flow grown one more year, divided by the difference between WACC and terminal growth, then discounted back five years. Enterprise value is the sum of the discounted explicit period and the discounted terminal value.
What to watch in the output
The terminal value share is the number to look at first. If more than roughly 75% of your enterprise value sits in the terminal year, the valuation is effectively an assertion about the state of the world in year six, not an analysis of your forecast. That is common for growth companies, but it needs saying out loud rather than being buried.
Terminal growth above long-run nominal GDP — call it 2% to 3% in developed markets — implies the business eventually consumes the economy. It is the single most frequent challenge from a diligence team, and the grid below shows exactly how much of your answer depends on it.
The WACC row matters just as much. A two-point move in the discount rate typically moves enterprise value by 20% to 35% for a growth company. If your discount rate is a round number nobody can source, the valuation is weaker than it looks.
What this tool deliberately ignores
Working capital movements, a real debt schedule, deferred tax, losses carried forward, share-based payment, minority interests, and the difference between enterprise and equity value. It also assumes constant growth and margin, which no real business has. Treat the output as a directional range for a conversation, not as a valuation.
A full valuation engagement builds the WACC from a named peer set, runs comparables and precedent transactions alongside the DCF, and documents the reasoning in a memo you can hand to an investor.
Two ways to start
Book the call, or start with the checklist.
If you know what you need, book the scoping call. If you are still deciding, take the checklist investors effectively run your model against and see where it stands.
Book a 30-minute scoping call
Thirty minutes on what exists, what it needs to do, and who has to be convinced. A fixed-scope proposal follows within 48 hours.