{"success":true,"version":"v1","request":{"tool":"get_calculator_schema","calculator_id":"dcf-valuation"},"result":{"entity_type":"calculator","id":"dcf-valuation","calculator_id":"dcf-valuation","canonical_url":"https://tttkmbb.com/investing/dcf-valuation","name":"DCF Valuation Calculator","title":"DCF Valuation Calculator – Enterprise and Equity Value from Projected Free Cash Flows with Gordon Terminal Value","category":"investing","category_name":"Investing & Real Estate","tool_name":"calculate_dcf_valuation","featured_mcp_tool":false,"description":"Projects free cash flow at a constant growth rate for a number of years, discounts each year and a Gordon-growth terminal value at the discount rate, and reports enterprise value, equity value (after net debt) and value per share.","use_when":"You want an intrinsic value of a company or project from its current free cash flow, a growth assumption, a discount rate (e.g. WACC) and a terminal growth rate.","do_not_use_when":"Cash flows are irregular or already listed year by year (use npv), the company has negative free cash flow, or you want the rate of return of known flows (use irr). Informational only; not financial advice.","inputs":[{"name":"current_free_cash_flow","label":"Current free cash flow","type":"number","required":true,"max":1000000000000000,"exclusive_min":0,"description":"Most recent annual free cash flow (year 0) in currency units.","example":100},{"name":"growth_rate_percent","label":"Growth rate (projection years)","type":"number","unit":"% per year","required":true,"min":-50,"max":100,"description":"Annual growth of free cash flow during the projection period.","example":10},{"name":"projection_years","label":"Projection years","type":"integer","unit":"years","required":false,"default":5,"min":1,"max":20,"description":"Number of explicitly projected years before the terminal value.","example":5},{"name":"discount_rate_percent","label":"Discount rate","type":"number","unit":"% per year","required":true,"max":100,"exclusive_min":0,"description":"Required return or WACC used to discount the cash flows.","example":10},{"name":"terminal_growth_percent","label":"Terminal growth rate","type":"number","unit":"% per year","required":true,"min":-10,"max":20,"description":"Perpetual growth after the projection period; must be below the discount rate.","example":2},{"name":"shares_outstanding","label":"Shares outstanding","type":"number","required":false,"max":10000000000000,"exclusive_min":0,"description":"Optional share count for the value per share.","example":10},{"name":"net_debt","label":"Net debt","type":"number","required":false,"default":0,"min":-1000000000000000,"max":1000000000000000,"description":"Debt minus cash, subtracted from enterprise value to get equity value (negative for net cash).","example":0}],"outputs":[{"name":"pv_of_cash_flows","label":"PV of projected cash flows","type":"number","decimals":2,"description":"Σ FCF_t / (1 + r)^t over the projection years."},{"name":"terminal_value","label":"Terminal value","type":"number","decimals":2,"description":"FCF_N × (1 + g_terminal) / (r − g_terminal) at the end of year N."},{"name":"pv_of_terminal_value","label":"PV of terminal value","type":"number","decimals":2,"description":"terminal_value / (1 + r)^N."},{"name":"enterprise_value","label":"Enterprise value","type":"number","decimals":2,"description":"pv_of_cash_flows + pv_of_terminal_value."},{"name":"terminal_value_share_percent","label":"Terminal value share of EV","type":"number","unit":"%","decimals":2,"description":"pv_of_terminal_value / enterprise_value × 100 (high values mean the result depends mostly on the terminal assumptions)."},{"name":"equity_value","label":"Equity value","type":"number","decimals":2,"description":"enterprise_value − net_debt."},{"name":"value_per_share","label":"Value per share","type":"number","decimals":2,"description":"equity_value / shares_outstanding (only when shares are given)."},{"name":"cash_flows","label":"Projected cash flows","type":"list","decimals":4,"description":"One row per year: year, fcf, discount_factor, present_value."}],"input_schema":{"type":"object","properties":{"current_free_cash_flow":{"description":"Most recent annual free cash flow (year 0) in currency units.","type":"number","maximum":1000000000000000,"exclusiveMinimum":0,"examples":[100]},"growth_rate_percent":{"description":"Annual growth of free cash flow during the projection period. 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Informational mathematics only; not financial advice.","sources":[{"name":"Wikipedia – Discounted cash flow","url":"https://en.wikipedia.org/wiki/Discounted_cash_flow","type":"reference","retrieved_at":"2026-09-24"},{"name":"Wikipedia – Dividend discount model","url":"https://en.wikipedia.org/wiki/Dividend_discount_model","type":"reference","retrieved_at":"2026-09-24"}],"freshness":{"type":"static","max_age_seconds":null,"note":"Deterministic formula with fixed constants; results never go stale. Inputs supplied by the caller determine the output."},"examples":[{"name":"FCF 100, 10 % growth, 5 years, 10 % discount, 2 % terminal","inputs":{"current_free_cash_flow":100,"growth_rate_percent":10,"projection_years":5,"discount_rate_percent":10,"terminal_growth_percent":2},"expected":{"pv_of_cash_flows":500,"terminal_value":2053.4,"pv_of_terminal_value":1275,"enterprise_value":1775,"terminal_value_share_percent":71.83,"equity_value":1775},"url":"https://tttkmbb.com/api/v1/calculate/dcf-valuation?current_free_cash_flow=100&growth_rate_percent=10&projection_years=5&discount_rate_percent=10&terminal_growth_percent=2"},{"name":"FCF 5 M, 8 % growth, 10 years, 9 % discount, 2.5 % terminal, 2 M shares, net debt 10 M","inputs":{"current_free_cash_flow":5000000,"growth_rate_percent":8,"projection_years":10,"discount_rate_percent":9,"terminal_growth_percent":2.5,"shares_outstanding":2000000,"net_debt":10000000},"expected":{"pv_of_cash_flows":47545244.93,"terminal_value":170222932.48,"pv_of_terminal_value":71904006.26,"enterprise_value":119449251.19,"equity_value":109449251.19,"value_per_share":54.72},"url":"https://tttkmbb.com/api/v1/calculate/dcf-valuation?current_free_cash_flow=5000000&growth_rate_percent=8&projection_years=10&discount_rate_percent=9&terminal_growth_percent=2.5&shares_outstanding=2000000&net_debt=10000000"}],"faq":[{"q":"Why must the terminal growth rate be below the discount rate?","a":"The Gordon formula TV = FCF × (1 + g)/(r − g) sums an infinite geometric series that only converges when g < r; a perpetual growth rate should also not exceed long-run economic growth."},{"q":"What is the difference between enterprise value and equity value?","a":"Enterprise value belongs to all capital providers; subtracting net debt (debt minus cash) leaves the value attributable to shareholders, which divided by the share count gives the per-share value."}],"tags":["dcf","discounted cash flow","intrinsic value","terminal value","enterprise value","free cash flow"],"related":[{"calculator_id":"npv","reason":"Discount an explicit list of cash flows instead of a growth projection."},{"calculator_id":"wacc","reason":"Derive the discount rate from the capital structure."},{"calculator_id":"gordon-growth","reason":"The perpetuity formula used for the terminal value, applied to dividends."}],"links":{"html":"https://tttkmbb.com/investing/dcf-valuation","markdown":"https://tttkmbb.com/investing/dcf-valuation.md","json":"https://tttkmbb.com/investing/dcf-valuation.json","api":"https://tttkmbb.com/api/v1/calculate/dcf-valuation","schema":"https://tttkmbb.com/api/v1/calculators/dcf-valuation","openapi":"https://tttkmbb.com/openapi.json","mcp":"https://tttkmbb.com/mcp"},"version":"v1","updated_at":"2026-09-24"},"timestamp":"2026-09-24T03:45:08Z"}