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DCF Model Calculator

Calculate implied Enterprise Value using a 5-year projection period and the Gordon Growth Model for Terminal Value.

JavaScript Required: This interactive calculator requires JavaScript to function. Below is the static mathematical framework.

Discount Rate (WACC) %

Terminal Growth Rate %

Projected Free Cash Flows ($M)

PV of Cash Flows

PV of Terminal Value

Total Implied EV

Projection PV (%) Terminal PV (%)

The Math

Discounting: Future cash flows are worth less than money today due to inflation and risk. The WACC represents that discount rate.

Terminal Value (Gordon Growth): Calculates the value of all cash flows beyond Year 5 assuming a perpetual growth rate (TGR).

TV = (FCF5 * (1 + TGR)) / (WACC - TGR)

Notice how Terminal Value typically accounts for 70%+ of the total Enterprise Value. A small tweak to the long-term growth rate dramatically swings the valuation.