Quick Guide to DCF Tool

Welcome to the first automatic DCF model calculator! With DCF Tool, we hope that you'll be able to quickly and accurately analyze company valuations using our online calculator. Below, we'll walk through a variety of features on our site.

Initial Page

Ticker

In the Ticker field, insert any stock listed on the major American stock exchanges.

Note: Not all Tickers are currently supported, depending on a variety of factors including: length of company formation/available financial reports, company business structures.

Analysis Parameters

Discount Rate

DCF Tool defaults to using the company specific WACC, however you can override it with any other discount rate (ex. S&P 500 historic performance).

Growth Rate

DCF Tool will try calculating a linear regression weighted fit to past years UFCF performance. This can be overridden, and in some cases must be inputted if past years data are volatile, and thus a linear regression fit would be inaccurate.

Terminal Rate

Default to 2%, this should be adjusted based on the expected growth rate in perpetuity of the specific company.

More Parameters

Here, you'll find options to adjust the number of growth years as part of the 2-phase model and to manually input the first future year cash flow value. This is highly useful in cases where companies have shown erratic, or negative previous year cash flows- you can manually input your assumption that the model can then forecast in this scenarios.

Calculated Cash Flows

In the below example, previous years cash flows are calculated and overlaid with the linear weighted regression fit- showing the calculated growth rate. As you can see, this growth rate has been used as the default for future years. This can be overridden under the "growth rate" parameter.

Analysis Results

DCF Tool combines all of the math, input variables, and outcomes into a simple results section that summarizes your results. Share your results with others using the links within this section!