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§ Tool · Valuation calculator

FCFF DCF calculator

A 10-year enterprise-value DCF: discount unlevered free cash flow at WACC, build an enterprise value, then bridge to equity per share by subtracting net debt and dividing by shares. The "value the whole firm, then carve out the equity" lens, one of eleven kernels behind the published stock analyses.

§ What this is warning you about first

FCFF DCFs fail quietly when reinvestment and terminal growth are inconsistent. Check whether terminal value is doing the valuation for you: above 60% of EV, the explicit ten-year stream barely matters and the answer is hostage to a single Gordon assumption.

WACC DCF
Model · fcff_dcf
EBIT / FCFF
Primary input
Low / mid / high
Output range · ±15%
EV → equity
Explicit net-debt bridge
10 yr
Horizon · v1
§ Start with a preset
Three archetype starting points. Adjust anything after.
LensUnlevered FCFF discounted at WACC into an enterprise value, bridged to equity per share with net debt./en/tools/fcff-dcf-calculator
§ Methodology variant
archetype_hint.fcff_methodology_variant
01Operating cash4 fields
$M
Operating income. Drives NOPAT = EBIT × (1 − tax). Required.
%
US C-corp anchor 21% when not supplied. Override per jurisdiction.
$M
Depreciation & amortization — added back to NOPAT.
$M
Capital expenditure — subtracted from NOPAT.
02Discount & growth3 fields
%
Blended cost of all capital. Must be > terminal growth.
%
Initial revenue / FCFF growth. Fades toward terminal over 10y.
%
Long-run sustainable rate. Default 3%. Must be < WACC.
03EV → equity bridge3 fields
$M
Total debt − total cash. Negative = net cash. Subtracted from EV.
M
Per-share denominator. Required.
$
Optional — for upside vs the fair-value range.
04Revenue-down schedulecurrent-state · n/a

Switch the methodology variant to revenue-down (above) to project from the top of the income statement. Inactive in current-state mode.

$M
Required for revenue-down. Top of the projection.
%
Year-10 margin. 0 holds the current margin flat.
%
% of revenue. 0 → fallback to NOPAT × capex/EBIT.
§ Fair value range · per share

FCFF DCF · Mature dividend payerrequired for archetype

reliability 75/100 · High
FV low · mid × 0.85
$210.86
FV mid · deterministic
$248.07
FV high · mid × 1.15
$285.28
Reduced — Terminal value > 60% of EV.
methodology_version = valuation-calculators.v1model_id = fcff_dcf
§ The bridge most calculators skip

Enterprise value → equity → per share

Enterprise value
$476.9B
−
Net debt
$18.0B
=
Equity value
$458.9B
÷
Shares
1,850M
=
Fair value / share
$248.07
Terminal value share of enterprise value64.1%
PV(TV) $305.6B of EV $476.9B · terminal-heavy — reliability penalised (−0.25)
§ Projection

Current-state FCFF compounded through a fade toward 3% terminal

$20.7BY1 · 6.0%
$21.9BY2 · 5.8%
$23.2BY3 · 5.6%
$24.4BY4 · 5.4%
$25.7BY5 · 5.2%
$26.9BY6 · 5.0%
$28.2BY7 · 4.7%
$29.5BY8 · 4.5%
$30.8BY9 · 4.3%
$32.0BY10 · 4.1%
NOPAT$19.0B
Base FCFF$19.6B
FCFF year 10$32.0B
Growth fade6% → 3%
§ Methodology variant
current_state_fcff_growth_fade

Current-state fade: base FCFF (NOPAT + D&A − CapEx) is compounded through a 10-year fade that blends the starting growth toward terminal growth (weight ramps 0 → 0.7). Right when current-state FCFF is a clean signal of the future.

§ Discount & terminal
WACC 8%  >  terminal 3%
EV $476.9B · TV $659.7B · PV(TV) $305.6B

Discounting FCFF at WACC produces an enterprise value, not an equity value — which is exactly why the net-debt bridge above is mandatory before dividing by shares.

§ Reliability factorsscore 75/100
−0.25Terminal value > 60% of EVterminal_value_high
§ Formula trace

Every step, derived

  1. methodology_variant = current_state_fcff_growth_fade
  2. NOPAT = EBIT 24000 × (1 − 0.21) = 18960.0
  3. base_FCFF = NOPAT 18960.0 + |D&A| 5200 − |CapEx| 4600 = 19560.0
  4. Σ PV(FCFF) = 171366.3 · TV = FCFF₁₀ 32023.2 × (1+0.030) / (0.080 − 0.030) = 659677.6
  5. PV(TV) = 305558.4 · terminal_value_pct = 64.1% of EV
  6. EV = Σ PV + PV(TV) = 476924.6 · Equity = EV − net_debt 18000 = 458924.6
  7. fair_value = max(0, 458924.6) / shares 1850 = 248.07
§ Calculator contract

One stable kernel contract, same as the reports

Reference the model by its stable id fcff_dcf, not the display label. The dedicated page, the all-model workbook, and the report pipeline all hit the same endpoint and reconcile to the same fair value.

Slug/en/tools/fcff-dcf-calculator
Kernel model idfcff_dcf · role fcff_dcf
Valuation lens10-yr enterprise-value FCFF DCF at WACC, EV → equity bridge, ±15% range
Primary inputEBIT / FCFF + WACC + net debt + shares
Run endpointPOST /api/v1/valuation-calculators/run · model_id: "fcff_dcf"
SensitivityPOST /api/v1/valuation-calculators/sensitivity · WACC × growth or WACC × terminal-growth grid
Response contractresult.status (computed / excluded / failed) + result.fairValue (low / mid / high) + terminal_value_pct + negative_equity + reliability
§ Notes

This surface is stateless. The same kernel powers the per-stock reports, so the fair value here reconciles exactly with the report's fcff_dcf output for the same inputs. The EPS-side siblings, discounted earnings and the multi-stage moat fade, discount EPS at Ke instead of FCFF at WACC; running the same stock through both triangulates capital-structure effects against earnings-quality effects.

All-model workbook →Discounted earnings siblingRead methodologymethodology_version = valuation-calculators.v1
§ FAQ

Five things worth knowing

Q01Why discount FCFF at WACC and not at cost of equity like the EPS DCFs?+
FCFF is the cash available to all capital providers — debt and equity — before financing. So it must be discounted at the blended cost of all that capital, WACC, and the output is an enterprise value. Discounting FCFF at Ke would double-count the cost of debt; discounting EPS (an equity-holder figure) at WACC would understate the discount. The two are not interchangeable, which is exactly why this model bridges EV to equity explicitly instead of treating the share price directly.
Q02What is the EV to equity bridge doing, and why does net debt matter so much?+
The DCF produces an enterprise value, the value of the whole firm. To get to equity per share you subtract net debt (explicit, or total debt minus total cash) and divide by shares. A 10x EBIT enterprise value for a company with debt = 3x EBIT and a company with net cash = 3x EBIT give wildly different per-share answers even when EV is identical. The bridge is the part most calculators get wrong by skipping it. Here EV, net debt, equity value, and the share count are all shown.
Q03When should I use the revenue-down variant instead of the default?+
The default variant compounds current-state FCFF through a growth fade, right for mature compounders and dividend payers whose current FCFF is a clean signal of the future. It is wrong for cyclicals (current FCFF is peak or trough), wrong for turnarounds (margins are recovering, not flat), and wrong wherever reinvestment is changing. The revenue-down variant projects each line independently: revenue grows, margin re-rates, reinvestment scales with revenue, tax can vary, which is the standard institutional approach for any non-steady-state DCF.
Q04What does FAILED mean here, and how is it different from excluded?+
Excluded means the model is structurally inapplicable (banks use residual income, REITs use NAV/AFFO, or a required input is missing, or WACC is at or below terminal growth). FAILED is different: the model applies, but the cash flows do not. In the default variant, negative_base_fcff means NOPAT + D&A minus CapEx is at or below 0, the firm is not yet generating cash for the firm. In the revenue-down variant, negative_terminal_fcff means the schedules imply contraction. Both are structured signals, not silent nonsense.
Q05How much of the value is terminal value, and what happens when equity is negative?+
terminal_value_pct (PV of the Gordon terminal divided by EV) is a first-class output. Above 60%, the explicit ten-year stream is doing little of the work, reliability drops 0.25, and the audit flags terminal_value_high. Separately, when EV is below net debt, equity is negative: fair value is clamped at 0 (never a negative share price), negative_equity is flagged, and reliability drops 0.40, a structural signal that the assumed FCFF and WACC cannot service the existing capital structure.