Discounted Cash Flow (DCF) Calculator

💡Tip: Use Discounted Cash Flow (DCF) for companies with predictable cash flows — not for fast-changing startups or highly volatile firms. know more about Discounted Cash Flow (DCF).

Current Free Cash Flow (FCF₀, ₹ Cr)

FCF Growth Rate (g, %)

Forecast Period (n, years)

Discount Rate (r, %)

Terminal Growth Rate (gₜ, %)

Shares Outstanding (S)

Net Debt (D, ₹ Cr)

Step 1Forecast Future FCF (FCF_t) for n Years

Formula: FCF_t = FCF_t-1 × (1 + g)

Year (t)	Formula	FCF_t (₹ Cr)
1	FCF₀ × (1 + g)	₹110
2	FCF1 × (1 + g)	₹121
3	FCF2 × (1 + g)	₹133.1
4	FCF3 × (1 + g)	₹146.41
5	FCF4 × (1 + g)	₹161.05
6	FCF5 × (1 + g)	₹177.16
7	FCF6 × (1 + g)	₹194.87
8	FCF7 × (1 + g)	₹214.36
9	FCF8 × (1 + g)	₹235.79
10	FCF9 × (1 + g)	₹259.37

Step 2Calculate Present Value (PV_t) of Each Year’s FCF

Formula: PV_t = FCF_t / (1 + r)^t

Year (t)	FCF_t (₹ Cr)	PV Formula	PV_t (₹ Cr)
1	₹110	FCF1 / (1 + r)^1	₹98.21
2	₹121	FCF2 / (1 + r)^2	₹96.46
3	₹133.1	FCF3 / (1 + r)^3	₹94.74
4	₹146.41	FCF4 / (1 + r)^4	₹93.05
5	₹161.05	FCF5 / (1 + r)^5	₹91.38
6	₹177.16	FCF6 / (1 + r)^6	₹89.75
7	₹194.87	FCF7 / (1 + r)^7	₹88.15
8	₹214.36	FCF8 / (1 + r)^8	₹86.58
9	₹235.79	FCF9 / (1 + r)^9	₹85.03
10	₹259.37	FCF10 / (1 + r)^10	₹83.51
Sum of PVs			₹906.86

Step 3Calculate Terminal Value (TV) at End of Year n

Formula: TV = FCF_n × (1 + gₜ) / (r - gₜ)

Calculation: TV = ₹259.37 × (1 + 3.00%) / (12.00% - 3.00%)
= ₹267.15 / 0.09
= ₹2,968.35

Year (n)	Terminal Value (TV)
10	₹2,968.35

Step 4Discount Terminal Value (TV) to Present Value (PV_TV)

Formula: PV_TV = TV / (1 + r)ⁿ

Calculation: PV_TV = ₹2,968.35 / (1 + 12.00%)¹⁰
= ₹2,968.35 / 3.1058
= ₹955.73

Year (n)	Discounted Terminal Value (PV_TV)
10	₹955.73

Step 5Add All Present Values

Total DCF Value = PV of FCFs + PV of Terminal Value

₹906.86 + ₹955.73 = ₹1,862.59

Step 6Calculate Fair Value per Share (P_fair)

Formula: P_fair = (Enterprise Value - D) / S

(₹1,862.59 - ₹0) / 1,00,00,000 = ₹1,862.59

Final Answer: ₹1,862.59 per share is the fair value.