DCF Valuation Calculator: calculate dcf valuation for your business. Formula, benchmarks, and practical tips included.
PV of FCF = Σ [FCFₜ ÷ (1 + WACC)ᵗ] for t = 1 to n
Terminal value = FCFₙ × (1 + g) ÷ (WACC − g)
PV of terminal value = Terminal value ÷ (1 + WACC)ⁿ
Enterprise value = PV of FCFs + PV of terminal value
Equity value = Enterprise value − Net debt
Worked example: FCFs years 1–5: 10, 12, 14, 16, 18. WACC 9%. Year 5 FCF grows at 3% in perpetuity. TV = 18 × 1.03 ÷ (0.09 − 0.03) = 309. PV of TV = 309 ÷ 1.09⁵ = 200.8. PV of FCFs ≈ 53.5. Enterprise value ≈ 254.3. Net debt 40. Equity value ≈ 214.3.