DCF Calculator
Estimate a stock’s fair value with a two-stage discounted cash flow model.
What is a DCF?
Discounted Cash Flow values a business as the present value of all the cash it will generate in the future. You project free cash flows, add a terminal value for cashflows beyond the horizon, and discount everything back at your required rate of return.
Use with judgement
DCF outputs swing wildly with small changes in growth and discount rate. The discipline of building one matters more than the exact number — always sanity-check against multiples and a margin of safety.
Frequently asked questions
What discount rate should I use?
Use the weighted average cost of capital (WACC), often 10–13% for Indian large-caps. Higher for riskier businesses.