DCF Tool

Welcome to the first automatic DCF model calculator! DCF Tool uses live financial data to perform a DCF analysis on publicly traded companies and can be used as a resource for making investment decisions.

What does DCF Tool do?

DCF Tool was designed to provide a quick, reliable and automatic calculator for investors to evaluate potential investment opportunities. Our default model uses historical financial data, individual company indicators (e.g. WACC) and growth modeling to produce a future growth forecast.

What is "DCF"?

Discounted Cash Flow (DCF) is a financial model that estimates what a company is worth today by using its forecasted free cash flows. This value is referred to as a company’s “Net Present Value” (NPV). A company’s NPV can be divided by its total number of shares to give the “true value” of its stock price. This “true value” can be useful when assessing the current market value of a share, and can suggest when a share may be under- or over-valued.

Using unlevered free cash flows, DCF Tool can compare companies from different industries. As different companies use a variety of accounting methods, unlevering allows for an accurate comparison. These cash flows are discounted back to today’s value using a discount rate (i.e. WACC) to account for many factors including the time value of money and opportunity costs.

Drawbacks to DCF Calculations

DCF is not an all-encompassing model, and it requires the use of many assumptions. It should be used as a “first pass” review for screening potential investment opportunities. This initial modeling should always be followed with more extensive and thorough research prior to investing decisions.

DCF Tool’s model includes default assumptions based on individual stock performance; however, each assumption is an unknown variable that can affect DCF accuracy. Results may be skewed if future company performance varies from these assumptions.

For more information on how to use DCF Tool, and the data that goes into producing this model, see our Quick Guide.