Business decision tool
Discounted Cash Flow Business Valuation Calculator
Value forecast free cash flow and a terminal multiple using a selected discount rate.
Inputs and results stay in this browser. Currency symbols are illustrative; use any consistent currency.
Understand DCF valuation
One idea, three depths
Choose how deeply to explain DCF valuation
DCF valuation: Value forecast free cash flow and a terminal multiple using a selected discount rate.
Age 5Explain it to a 5-year-oldStart with a picture
Imagine using DCF valuation to answer this question: value forecast free cash flow and a terminal multiple using a selected discount rate? Enter Current annual free cash flow, Annual forecast growth, Discount rate, and 2 other inputs; the calculator shows Estimated enterprise value. Try changing one number and watch what happens to Estimated enterprise value. The answer tells you Estimated enterprise value.
Age 15Explain it to a 15-year-oldConnect it to the formula
This compact DCF grows one starting free-cash-flow figure at a constant rate and applies a terminal multiple. Small assumption changes can materially alter valuation. The rule is Enterprise value = Σ forecast FCFₜ ÷ (1 + r)ᵗ + terminal value ÷ (1 + r)ⁿ. Its input values are Current annual free cash flow, Annual forecast growth (%), Discount rate (%), Explicit forecast years, Terminal free-cash-flow multiple (×), and the main result is Estimated enterprise value. Try changing one number and watch what happens to Estimated enterprise value.
CollegeExplain it at college levelState the model precisely
This tool models one operating decision from explicitly supplied company assumptions. The implemented relation is Enterprise value = Σ forecast FCFₜ ÷ (1 + r)ᵗ + terminal value ÷ (1 + r)ⁿ, evaluated from Current annual free cash flow, Annual forecast growth (%), Discount rate (%), Explicit forecast years, Terminal free-cash-flow multiple (×) to produce Estimated enterprise value. This compact DCF grows one starting free-cash-flow figure at a constant rate and applies a terminal multiple. Small assumption changes can materially alter valuation. The model omits unentered taxes, cash timing, legal constraints and market uncertainty. Compare the output with company records and a downside scenario before committing resources.
The decision this tool supports
Value forecast free cash flow and a terminal multiple using a selected discount rate.
Why the business model works
This compact DCF grows one starting free-cash-flow figure at a constant rate and applies a terminal multiple. Small assumption changes can materially alter valuation.
Inputs and operating assumptions
This model uses Current annual free cash flow, Annual forecast growth, Discount rate (at least 0.01), Explicit forecast years (at least 1), Terminal free-cash-flow multiple (at least 0). Keep currencies, accounting treatment and time periods consistent with one another.
The formula
Enterprise value = Σ forecast FCFₜ ÷ (1 + r)ᵗ + terminal value ÷ (1 + r)ⁿ
What the calculator produces
The primary output is Estimated enterprise value; it also exposes Present value of forecast cash flows, Present value of terminal value, Terminal-value share. Change one assumption at a time so the comparison remains explainable.
Before using the result in a decision
This compact model cannot capture every tax, accounting, legal, market or operational condition. Compare the output with current company records, cash timing and the downside scenario before committing resources.
Supporting sourcesAcademic referencesPrimary standards, textbooks and complete citations
Standards, reading and academic references
Use the calculator as the worked interaction, then consult the primary standards and academic textbooks listed below. MW SysArc links to the original sources; the explanation on this page is original and does not reproduce them.
Introduction to Business 2e
Read the free OpenStax business textbookCite this book
- APA 7
- Gitman, L. J., McDaniel, C., Shah, A., Reece, M., Koffel, L., Talsma, B., & Hyatt, J. C. (2026). Introduction to business 2e. OpenStax. https://openstax.org/books/introduction-business-2e/pages/1-introduction
- MLA 9
- Gitman, Lawrence J., et al. Introduction to Business 2e. OpenStax, 2026, https://openstax.org/books/introduction-business-2e/pages/1-introduction.
- Chicago author-date
- Gitman, Lawrence J., Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, and James C. Hyatt. 2026. Introduction to Business 2e. Houston, TX: OpenStax. https://openstax.org/books/introduction-business-2e/pages/1-introduction.
OpenStax entries are free to read online. Follow the licence shown on each linked source before redistributing or adapting its content.
Reuse the page responsiblyCite this pageAPA, MLA, Chicago, Harvard, BibTeX and RIS
These formats cite this calculator page itself. They are separate from the academic references above, which support the mathematical method and terminology.
APA 7
MW SysArc. (2026, July 21). Discounted Cash Flow Business Valuation Calculator. MW SysArc Tools. https://business.mwsysarc.com/discounted-cash-flow-valuation
MLA 9
MW SysArc. “Discounted Cash Flow Business Valuation Calculator.” MW SysArc Tools, 21 July 2026, https://business.mwsysarc.com/discounted-cash-flow-valuation. Accessed 30 Aug. 2026.
Chicago 17
MW SysArc. “Discounted Cash Flow Business Valuation Calculator.” MW SysArc Tools. Published July 21, 2026. Accessed August 30, 2026. https://business.mwsysarc.com/discounted-cash-flow-valuation.
Harvard
MW SysArc (2026) ‘Discounted Cash Flow Business Valuation Calculator’, MW SysArc Tools. Published 21 July 2026. Available at: https://business.mwsysarc.com/discounted-cash-flow-valuation (Accessed: 30 August 2026).
BibTeX and RIS records
BibTeX
@misc{mwsysarc_discounted_cash_flow_valuation_2026,
author = {{MW SysArc}},
title = {Discounted Cash Flow Business Valuation Calculator},
howpublished = {MW SysArc Tools},
year = {2026},
url = {https://business.mwsysarc.com/discounted-cash-flow-valuation},
note = {Published July 21, 2026; accessed August 30, 2026}
}RIS
TY - ELEC
AU - MW SysArc
TI - Discounted Cash Flow Business Valuation Calculator
T2 - MW SysArc Tools
PY - 2026
DA - 2026-07-21
Y2 - 2026-08-30
UR - https://business.mwsysarc.com/discounted-cash-flow-valuation
N1 - Published July 21, 2026
ER -Clear answers
Frequently asked questions
What does the DCF valuation do?
Value forecast free cash flow and a terminal multiple using a selected discount rate.
How does the DCF valuation work?
The calculator applies Enterprise value = Σ forecast FCFₜ ÷ (1 + r)ᵗ + terminal value ÷ (1 + r)ⁿ. This compact DCF grows one starting free-cash-flow figure at a constant rate and applies a terminal multiple. Small assumption changes can materially alter valuation.
What can I learn from the DCF valuation?
It connects company inputs to a transparent business result. Change one value at a time to compare operating scenarios.
Does MW SysArc receive or store what I enter?
No. The calculation runs locally in your browser. MW SysArc does not receive or store your calculation inputs.
How should I use the result?
Use the result as a practical reference. Review the inputs, assumptions and stated limitations before relying on it.
Last reviewed . Calculations tested .