DCF Valuation Calculator - Young Investor Calculator

Calculate DCF Valuation

Enter the base cash flow, growth rate, discount rate, terminal growth rate, shares outstanding, and net debt (for FCFF) to forecast cash flows and estimate the intrinsic value. All monetary values should be in Ghanaian Cedi (GHS). Example: Use base FCFF or FCFE data from Access Bank Ghana (174 million shares).

DCF Formula

DCF = Σ (Cash Flowₜ / (1 + Discount Rate)ᵗ) + Terminal Value / (1 + Discount Rate)ⁿ

Where Cash Flowₜ = Base Cash Flow × (1 + Growth Rate)^t for each year, Terminal Value = (Final Year Cash Flow × (1 + Terminal Growth Rate)) / (Discount Rate - Terminal Growth Rate). For FCFF: Equity Value = DCF - Net Debt, Per-share value = Equity Value ÷ Shares Outstanding. For FCFE: Per-share value = DCF ÷ Shares Outstanding.

Cash Flow Type

Forecast Period (Years)

Base Cash Flow (GHS)

Growth Rate (%)

Discount Rate (%)

Terminal Growth Rate (%)

Shares Outstanding (millions)

DCF Valuation Results

Intrinsic Value

GHS 0.00

Intrinsic Value per Share

Interpretation:

Year	Cash Flow (GHS)	Present Value (GHS)
Terminal Value
Total

The forecasted cash flows are based on the base cash flow and growth rate. Use the total DCF value (and equity value for FCFF) and per-share value to assess the intrinsic value of the investment. The per-share value is calculated by dividing the equity value (or total DCF for FCFE) by shares outstanding (e.g., 174 million for Access Bank Ghana).

Understanding DCF Valuation

Discounted Cash Flow (DCF) valuation estimates the intrinsic value of an investment (FCFE) or firm (FCFF) by forecasting and discounting projected future cash flows to their present value. FCFF valuations require subtracting net debt to derive equity value.

Intrinsic Value

Assess True Worth

DCF calculates the present value of forecasted future cash flows, reflecting the investment’s or firm’s true value.

Accurate Inputs

Critical for Results

Use reliable base cash flow, growth rates, discount and terminal growth rates, and net debt (for FCFF).

How to Use the DCF Calculator

Select Cash Flow Type
Choose FCFE for equity valuation or FCFF for firm valuation. FCFF valuations include an additional step to subtract net debt to calculate equity value.
Select Forecast Period
Choose the number of years (1–10) for which to project future cash flows.
Enter Base Cash Flow and Growth Rate
Input the current (Year 0) cash flow (FCFE or FCFF) and the annual growth rate (%). The calculator will automatically forecast cash flows for each year using the formula: Cash Flowₜ = Base Cash Flow × (1 + Growth Rate)ᵗ. For example, a base cash flow of GHS 250M with a 5% growth rate will generate Year 1 cash flow of GHS 262.5M, Year 2 of GHS 275.625M, etc.
Enter Discount Rate
Input the discount rate (%) to calculate the present value of future cash flows. Use the Weighted Average Cost of Capital (WACC) for FCFF (typically 5–12%) or the cost of equity for FCFE (e.g., via CAPM). You can calculate this using the Cost of Equity Calculator or source it from financial websites like Yahoo Finance.
Enter Terminal Growth Rate
Input the perpetual growth rate (%) for cash flows after the forecast period (typically 1–3%), based on long-term GDP or industry growth rates.
Enter Shares Outstanding
Input the total number of shares outstanding in millions (e.g., 174 for Access Bank Ghana) to calculate the intrinsic value per share.
Enter Net Debt (for FCFF)
For FCFF valuations, input net debt (total debt minus cash and cash equivalents) from the company’s balance sheet, sourced from financial websites like Yahoo Finance or gse.com.gh.
Calculate and Review
Click “Calculate” to forecast cash flows, compute the DCF value (enterprise value for FCFF or equity value for FCFE), and determine the per-share value. Review the results table to see forecasted cash flows and their present values. Compare the intrinsic value per share with the current share price to assess investment opportunities.

Key Applications of DCF

Valuing companies or investments based on forecasted future cash flows
Assessing intrinsic value for stock investments
Comparing investment opportunities
Estimating per-share value by dividing equity value (FCFF) or total DCF (FCFE) by shares outstanding

Download Guide Watch Tutorial

To calculate an accurate Discounted Cash Flow (DCF) valuation, source reliable financial data. Here’s how to find the required inputs for global and Ghanaian companies:

Base Cash Flow
Use the current or Year 0 Free Cash Flow to Equity (FCFE) or Free Cash Flow to the Firm (FCFF):
- FCFE: Calculate using the FCF Forecasting Calculator or source from cash flow statements (Yahoo Finance, gse.com.gh).
- FCFF: Find in cash flow statements under “Operating Cash Flow” minus capital expenditures, or use the FCFF Calculator.
Growth Rate
Estimate the annual growth rate for forecasting cash flows:
- Sources: Analyst estimates from Yahoo Finance “Analysis” tab, company guidance, or historical growth rates from financial statements.
Discount Rate
Use the Weighted Average Cost of Capital (WACC) for FCFF or required return for FCFE:
- WACC: Calculate using cost of equity (CAPM) and cost of debt, or use estimates from financial websites.
- Sources: Yahoo Finance, Bloomberg, or company annual reports.
Terminal Growth Rate
Estimate perpetual growth rate:
- Typically 1-3%, based on long-term GDP growth or industry growth rates.
- Sources: IMF/World Bank for Ghana GDP growth, or analyst reports.
Shares Outstanding
Find the total number of shares outstanding:
- Sources: Company annual reports, 10-K filings, or financial websites like Yahoo Finance or gse.com.gh.
- Example: Access Bank Ghana has 174 million shares outstanding (source: gse.com.gh).
Net Debt (for FCFF)
Calculate as total debt (short-term + long-term debt) minus cash and cash equivalents:
- Sources: Company balance sheets from Yahoo Finance, gse.com.gh, or annual reports.
- Example: Access Bank Ghana has total debt of GHS 600M and cash of GHS 100M, so net debt = GHS 500M.
Tips
- Verify data from multiple sources (e.g., Yahoo Finance, gse.com.gh, annualreportsghana.com).
- For Ghanaian companies, check gse.com.gh for financial statements and announcements.
- Ensure discount rate exceeds terminal growth rate for valid terminal value.

Examples:

Access Bank Ghana (FCFF): Base FCFF = GHS 250M, Growth Rate = 5%, WACC = 8%, Terminal Growth = 2%, Shares Outstanding = 174M, Net Debt = GHS 500M (from gse.com.gh).
JPMorgan Chase (FCFE): Base FCFE = $15B, Growth Rate = 4%, Discount Rate = 7%, Terminal Growth = 2.5%, Shares Outstanding = 2.9B (from Yahoo Finance).