Profitability / Free financial tools

Business Valuation DCF Calculator

Explore an illustrative enterprise and equity valuation from free cash flow and long-run assumptions.

USD • Planning model · Instant results · No sign-up

Enable JavaScript to use this interactive calculator. The calculation method and assumptions are explained below.

How this calculator works

FCFF = EBIT × (1 − tax rate) + depreciation/amortization − capital expenditure − increase in working capital. Forecast cash flows and a perpetual-growth terminal value are discounted at WACC. Excess cash, debt and senior claims convert enterprise to equity value.

Planning estimate only. Review the assumptions alongside the result before using it for a tax, financing or business decision.

Common questions

Is this a formal business valuation?

No. It is a sensitivity model using simplified forecasts. Customer concentration, risk, working-capital needs and market evidence require professional judgment.

Why must terminal growth be below WACC?

The perpetual-growth formula divides next-period cash flow by WACC minus growth. Equal or higher growth makes that model invalid.

Put your numbers into context.

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