Free DCF Calculator
Estimate what a stock is really worth. Enter a few assumptions and get an intrinsic fair value, the upside versus today's price, and the annual return the current price implies — instantly, in your browser, with no account.
Fair value = EPS × (1+g)n × exit multiple, discounted back at your required return. A positive upside means the model sees the stock as undervalued at today's price.
Worked example
Suppose a company earns $6.00 of forward EPS, you expect 10% annual growth for 10 years, and you think it will trade at an 18× exit P/E. In year 10 EPS is 6 × 1.1010 ≈ $15.56, implying a share price of 15.56 × 18 ≈ $280.
Discounting that back 10 years at a 10% required return gives a fair value of 280 / 1.1010 ≈ $108. If the stock trades at $150 today, the model says it is roughly 28% overvalued for your return target — you would need faster growth or a higher exit multiple to justify the price.
What is a DCF and how does this calculator work?
A discounted cash flow (DCF) model values a business by projecting what it will earn or generate in cash, then discounting those future amounts back to today because a dollar tomorrow is worth less than a dollar now. This calculator uses a compact per-share version: it compounds your base metric (forward EPS or free cash flow per share) at your growth rate, applies an exit multiple to get a future price, then discounts that price back at the annual return you require.
The output is a fair value — the most you can pay today and still earn your target return — plus the implied upside and the CAGR you would actually realise if you bought at the current price.
Which inputs matter most?
Growth rate and exit multiple move the answer the most, and they are the hardest to know — small changes compound over ten years. Be conservative: use a growth rate a quality business can plausibly sustain, and an exit multiple in line with mature peers rather than today's hype. When you are unsure of a single number, run the Monte Carlo simulator to see a range instead of a false-precision point estimate, or the reverse DCF to see what growth the price already assumes.
Frequently asked questions
- Is this DCF calculator really free?
- Yes. It runs entirely in your browser with no signup, no paywall and no limit on how many stocks you value.
- Should I use EPS or free cash flow?
- Either works — the model compounds whatever per-share metric you enter. Free cash flow per share is closer to what a DCF is meant to value, but forward EPS is easier to find and fine for a quick screen.
- What discount rate (required return) should I use?
- Use the annual return you want to earn for the risk. Many long-term investors use 8–12%; a higher number is more conservative and lowers the fair value.
- Why is my fair value so sensitive to the exit multiple?
- Because it multiplies the final-year metric directly. A stock at 25× versus 15× changes the terminal price by two-thirds. Anchor the multiple to durable, mature-business levels, not the current one.
Value your whole portfolio, not just one stock
TrimmTrack runs this DCF (plus reverse DCF, Graham number and Monte Carlo) on every holding in your portfolio, with live prices pulled in automatically.