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DCF Calculator

Calculate intrinsic value of companies using Discounted Cash Flow.

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DCF Calculator
Calculate intrinsic value of companies using Discounted Cash Flow.
Current EPS (₹)
Expected growth rate (%)
Growth period (years)
Discount rate (%)
Terminal growth rate (%)
Sum of discounted earnings
₹643.70
Terminal value (PV)
₹1147.52
Intrinsic value (per share)
₹1791.22
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For illustration only. Subject to market risks. Not investment advice.

⚠️ Disclaimer: Results are for illustration only. Mutual Fund investments subject to market risks. Assumed returns may not reflect actual performance. Read all scheme-related documents carefully. Not investment advice.
About this calculator

DCF Calculator — explained

The Discounted Cash Flow (DCF) Calculator estimates the intrinsic value of a stock by projecting future earnings and discounting them back to today. DCF analysis is the gold standard in fundamental equity analysis and stock valuation — used by professional analysts, value investors, CFAs, and portfolio managers to decide whether a share is undervalued or overvalued relative to its current market price. This free online DCF calculator accepts current EPS, expected growth rate, growth period, discount rate, and terminal growth rate to compute fair value per share.

While DCF is mostly used by direct stock investors, mutual fund investors benefit indirectly because fund managers use DCF along with many other valuation frameworks to pick stocks. Use this calculator to understand fundamental valuation, evaluate individual stocks, or test 'what-if' scenarios on growth and discount assumptions. Backed by AMFI Registered MFD Nithin Finserv, Bengaluru.

What is the DCF Calculator?

Discounted Cash Flow (DCF) is a valuation technique that estimates the intrinsic value of an asset (typically a company or stock) by projecting its future cash flows and discounting them back to present value at a chosen discount rate. The underlying principle: a rupee tomorrow is worth less than a rupee today, because of the time value of money and risk. DCF is widely used by investment banks, equity analysts, and value investors when picking stocks.

How it works — the formula

Intrinsic value = Σ (EPS × (1 + g)^t / (1 + d)^t) for t = 1 to growth period + present value of terminal value. Terminal value = EPS × (1 + g)^t × (1 + tv) / (d − tv), where g is the explicit-period growth, d is the discount rate (cost of equity), and tv is the terminal growth rate (assumed beyond the explicit period). The intrinsic value is then compared to current market price to assess over- or undervaluation.

How to use this calculator

  1. 1Enter the company's current EPS (earnings per share)
  2. 2Estimate the expected EPS growth rate over the growth period
  3. 3Set the growth period (typically 5–10 years)
  4. 4Set the discount rate (10–12% reflects cost of equity for Indian stocks)
  5. 5Set the terminal growth rate (2–4% is a common long-term assumption)
  6. 6Compare the calculated intrinsic value to the current share price
  7. 7Run sensitivity tests by changing growth and discount inputs

Key features

  • ✓Two-stage DCF model (explicit growth + terminal value)
  • ✓Adjustable EPS, growth, discount, and terminal rates
  • ✓Per-share intrinsic value output
  • ✓Sensitivity-test friendly with instant re-calculation
  • ✓Free, mobile-friendly, no signup

Frequently asked questions

How accurate is DCF analysis?
DCF is only as good as your inputs. Small changes in growth or discount rate dramatically shift the intrinsic value. Use it as one input among many — alongside P/E, ROE, debt levels, and qualitative analysis of management and moats.
What discount rate should I use for Indian stocks?
10–12% reflects cost of equity for established Indian large-cap companies. Use higher (13–15%) for smaller, riskier businesses with volatile earnings; lower (9–10%) for blue chips with predictable cash flows.
What is a reasonable terminal growth rate?
2–4% is standard — roughly the long-term GDP or inflation rate. Higher than 5% is generally unrealistic and inflates the valuation significantly. Some analysts use 0% to be ultra-conservative.
Is DCF used in mutual fund investing?
Fund managers use DCF along with many other valuation frameworks. As a mutual fund SIP investor you don't need to run DCF yourself — the fund manager does. DCF is most useful if you pick individual stocks.
What's the difference between DCF and DDM?
DCF projects free cash flow (or earnings); DDM (Dividend Discount Model) projects dividends specifically. DDM works only for dividend-paying companies; DCF works for any company. Both discount future flows to present value.
Does DCF account for debt?
This simple two-stage DCF uses EPS, which is post-interest. A fuller enterprise-value DCF would project free cash flow to firm (FCFF) and adjust separately for debt. The simple version is sufficient for retail screening.
What is margin of safety in DCF?
The discount between intrinsic value and market price. Value investors typically demand a 20–30% margin of safety — i.e., they only buy if the stock trades at a 20–30% discount to their calculated intrinsic value.
Should I use DCF or just P/E ratio?
Both — they complement each other. P/E is a quick screen; DCF is a deeper valuation. A stock can have a low P/E but still be overvalued on DCF if earnings are about to collapse.
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