Start with credible inputs
Use normalized free cash flow, scenario-specific growth, a discount rate, terminal growth, net debt and diluted share count. Avoid using one optimistic case as the baseline.
LONG-TERM INVESTMENT · VALUATION
What could this company be worth?
Compare bull, base and bear ten-year cash-flow paths in one transparent estimate of fair value per share.
BASE-CASE FAIR VALUE · Example Company
$35.88Estimated fair value per shareBull case$48.05
- Current price
- $20.00
- Upside / downside
- +140.2%
- Model signal
- BUY
Base case$35.88
- Current price
- $20.00
- Upside / downside
- +79.4%
- Model signal
- BUY
Bear case$25.03
- Current price
- $20.00
- Upside / downside
- +25.1%
- Model signal
- BUY
Mechanical comparison only. BUY or SELL is the model comparing fair value with market price—not an investment recommendation.
THREE TEN-YEAR FORECASTS
How free cash flow may evolve in each case.
The chart begins with the same latest free cash flow, then applies each case’s two growth stages. The valuation table discounts every annual cash flow and the year-10 terminal value back to today.
Bull caseBase caseBear case
Three-case cash-flow forecast
| Year | Bull case | Base case | Bear case | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Free cash flow | PV of FCF | Cumulative PV | Free cash flow | PV of FCF | Cumulative PV | Free cash flow | PV of FCF | Cumulative PV | |
| 1 | $1,026.00M | $932.73M | $932.73M | $981.00M | $891.82M | $891.82M | $927.00M | $842.73M | $842.73M |
| 2 | $1,169.64M | $966.64M | $1,899.37M | $1,069.29M | $883.71M | $1,775.53M | $954.81M | $789.10M | $1,631.83M |
| 3 | $1,333.39M | $1,001.80M | $2,901.17M | $1,165.53M | $875.68M | $2,651.21M | $983.45M | $738.88M | $2,370.71M |
| 4 | $1,520.06M | $1,038.22M | $3,939.39M | $1,270.42M | $867.72M | $3,518.92M | $1,012.96M | $691.86M | $3,062.57M |
| 5 | $1,732.87M | $1,075.98M | $5,015.37M | $1,384.76M | $859.83M | $4,378.75M | $1,043.35M | $647.84M | $3,710.41M |
| 6 | $1,871.50M | $1,056.41M | $6,071.78M | $1,454.00M | $820.74M | $5,199.50M | $1,053.78M | $594.83M | $4,305.24M |
| 7 | $2,021.22M | $1,037.21M | $7,108.99M | $1,526.70M | $783.44M | $5,982.93M | $1,064.32M | $546.16M | $4,851.41M |
| 8 | $2,182.92M | $1,018.35M | $8,127.34M | $1,603.03M | $747.83M | $6,730.76M | $1,074.96M | $501.48M | $5,352.88M |
| 9 | $2,357.55M | $999.83M | $9,127.17M | $1,683.19M | $713.84M | $7,444.60M | $1,085.71M | $460.45M | $5,813.33M |
| 10 | $2,546.16M | $981.65M | $10,108.83M | $1,767.35M | $681.39M | $8,125.98M | $1,096.57M | $422.77M | $6,236.10M |
Valuation Breakdown
| Metric | Bull case | Base case | Bear case |
|---|---|---|---|
| PV of years 1–10 cash flow | $10,108.83M | $8,125.98M | $6,236.10M |
| Terminal value at year 10 | $34,797.51M | $24,153.72M | $14,986.43M |
| Present value of terminal value | $13,415.95M | $9,312.31M | $5,777.92M |
| Enterprise value | $23,524.77M | $17,438.29M | $12,014.02M |
| Add cash | $1,500.00M | $1,500.00M | $1,500.00M |
| Less debt | -$1,000.00M | -$1,000.00M | -$1,000.00M |
| Equity value | $24,024.77M | $17,938.29M | $12,514.02M |
| Shares outstanding | 500.00M | 500.00M | 500.00M |
| Estimated fair value per share | $48.05 | $35.88 | $25.03 |
| Current share price | $20.00 | $20.00 | $20.00 |
This simplified DCF ignores dilution changes, stock-based compensation adjustments, cyclicality, acquisitions, currency effects and detailed reinvestment needs. Small changes to growth, discount rate or terminal growth can materially change the result. Educational use only—not investment advice.
HOW TO READ THIS
A DCF is sensitive
because the future is.
Do not search for one “correct” answer. Run a conservative, base and optimistic case, then notice which assumptions move the valuation most. The BUY or SELL label is only the model comparing two numbers—not a substitute for research, diversification or judgment.
COMPANY DCF VALUATION CALCULATOR EXPLAINED
What is a stock worth under bull, base and bear cash-flow assumptions?
A discounted cash flow model estimates business value by projecting future free cash flow and discounting it back to today, then adjusting enterprise value to estimate value per share.
How to interpret the calculator result
Read the result in context
Compare fair value per share across all three scenarios and identify which assumption causes the widest change. Sensitivity is information, not a flaw to hide.
Turn it into a decision
Use the model to frame what must be true for the price to make sense, then check those assumptions against business evidence.
COMMON QUESTIONS
Questions about this company DCF valuation calculator.
What discount rate should I use in a DCF?
Use a rate consistent with the business risk and financing structure, and test a range. Small changes can materially change present value.
Why do DCF valuations vary so much?
Most value often depends on long-term cash flow, discount rate and terminal assumptions, all of which are uncertain and compound over time.
MODEL & DATA CARD
Inspect the calculation before trusting the result.
What this tool answersEstimates a range of equity values from user-entered free cash flow assumptions. It answers ‘what would these assumptions be worth?’, not ‘what is the objectively correct price?’
Calculation method
Forecasts ten years of free cash flow using either two five-year growth stages or ten annual rates. Each cash flow is discounted to today. Year-10 cash flow feeds a Gordon-growth terminal value, FCF₁₁ ÷ (discount rate − terminal growth); cash is added, debt deducted, and equity value divided by shares.
Data lineage
No company filing, quote or analyst estimate is fetched. Free cash flow, cash, debt, shares, discount rate, growth and current price are all user inputs and should be reconciled to a consistent reporting date and accounting definition.
Visible checks
The tool blocks terminal-value calculation when the discount rate is not above terminal growth, and exposes forecast cash flows, discount factors, terminal value and the enterprise-to-equity bridge for all three scenarios.
Important omissions
The model does not normalise accounting data or separately model dilution, stock compensation, cyclicality, acquisitions, failure risk, currency or reinvestment needs. Terminal value can dominate the result. BUY/SELL is only a mechanical price comparison, not a recommendation.
Primary references and data origin
External sources explain the data or method; they do not endorse Rich2Fire or its outputs.
EVIDENCE SNAPSHOT
What this tool is built on.
Company DCF Calculator. Estimates bull, base and bear equity values from a ten-year free-cash-flow forecast and Gordon-growth terminal value.
This is implementation evidence, not professional certification. Assumptions and limits matter more than a badge. Correction policy.
- Model version
- 1.0
- Last reviewed
- Evidence basis
- Published formulas using your inputs
- Data status
- No live feed; results change only with your inputs
- Decision sensitivity
- Financial assumptions matter
CITE THIS TOOL
Let readers return to the same version.
This citation includes the tool name, model version, review date and stable URL. Citation does not imply Rich2Fire endorses third-party content.
Rich2Fire. (2026). Company DCF Calculator (model version 1.0, reviewed 2026-10-10). https://rich2fire.com/tools/company-dcf-calculator