Enterprise value
Split value between explicit forecast years and terminal value so the model is transparent enough for board scrutiny.
Free ToolsDCF Valuation Calculator
Finance utility
DCF Valuation Calculator for board decks, IC memos, and valuation reviews
Model discounted cash flow with explicit forecast cash flows, WACC, terminal growth or exit multiple, net debt, and diluted shares. Get enterprise value, equity value, implied share price, and a slide-ready takeaway before you open PowerPoint.
Sensitivity built in
Pressure-test WACC, terminal growth, or exit multiple instead of hiding the real drivers in backup tabs.
Deck-ready output
Turn the result into a valuation headline, enterprise-to-equity bridge, and risk slide for decision-makers.
Calculator
Preset starting points
Valuation update for a scaling software company balancing growth durability against margin expansion.
Terminal value method
Forecast free cash flow to firm (USDm)
Formula and component breakdown
Explicit-period DCF
PV of forecast cash flows = FCFF1 / (1 + WACC)^1 + ... + FCFF5 / (1 + WACC)^5
Current explicit PV: $149.5m
Terminal-value method
Terminal value = Final FCFF x (1 + g) / (WACC - g)
Terminal value: $988.8m
Discounted terminal value
Terminal value is discounted back from year 5 using the same WACC assumption.
Terminal PV: $600.2m
Equity bridge
Equity value = Enterprise value - net debt. Implied share price = Equity value / diluted shares.
Implied share price: $5.96
| Year | FCFF | Discount factor | Present value |
|---|---|---|---|
| Year 1 | $18m | 0.905 | $16.3m |
| Year 2 | $28m | 0.819 | $22.9m |
| Year 3 | $40m | 0.741 | $29.6m |
| Year 4 | $55m | 0.671 | $36.9m |
| Year 5 | $72m | 0.607 | $43.7m |
Deck storyline
$749.7m enterprise value frames the valuation answer
Lead with what the DCF says the asset is worth today, not with the model mechanics. The first slide should answer whether the range supports the current price, offer, or board posture.
Answer-first valuation summary with EV, equity value, and per-share output
Deck storyline
80.1% of EV comes from terminal value
Show how much of the answer is coming from long-run assumptions. If terminal value dominates, make the sensitivity exhibit impossible to miss.
Bridge from explicit forecast PV to discounted terminal value
Deck storyline
$714.7m equity value must bridge through net debt
Do not stop at enterprise value. Finance audiences want to see how debt, cash, and other claims translate EV into an equity conclusion they can actually use.
Enterprise-to-equity waterfall with debt and cash adjustments
Sensitivity table
Serious valuation work almost always needs a range view. This table shows implied share price sensitivity to discount-rate changes and the terminal assumption that matters for the selected method.
| WACC | 2.5% g | 3.0% g | 3.5% g |
|---|---|---|---|
| 9.5% | $6.57 | $7.03 | $7.57 |
| 10.5% | $5.62 | $5.96 | $6.34 |
| 11.5% | $4.88 | $5.13 | $5.42 |
Worked example
This uses the default public B2B SaaS preset with the perpetuity-growth method.
Explicit-period PV = $18m / (1 + 10.5%)^1 + $28m / (1 + 10.5%)^2 + $40m / (1 + 10.5%)^3 + $55m / (1 + 10.5%)^4 + $72m / (1 + 10.5%)^5 = $149.5m.
Terminal value = $72m x (1 + 3.0%) / (10.5% - 3.0%) = $988.8m.
Discounted terminal value = $988.8m / (1 + 10.5%)^5 = $600.2m.
Enterprise value = $149.5m + $600.2m = $749.7m.
Equity value = $749.7m - $35m = $714.7m, or $5.96 per share.
How business teams use this output
Board valuation reviews
Use DCF to explain whether the current valuation already prices in the operating plan or still assumes execution the company has not earned yet.
Investment committee memos
Make the underwriting bridge visible: forecast cash flow, discount rate, terminal assumption, downside range, and debt-adjusted equity conclusion.
Corp dev and M&A screens
Use it early to test whether the initial price posture can survive a reasonable operating plan before diligence or negotiations get expensive.
Capital-allocation cases
Frame long-term investment decisions with explicit cash-flow logic instead of relying only on simple ROI or payback headlines.
WACC Calculator
Pressure-test the discount-rate assumption behind the DCF.
CAPM Cost of Equity Calculator
Defend the shareholder return requirement that flows into WACC.
EBITDA Multiple Valuation Calculator
Cross-check the DCF with a comps-based enterprise-value view.
Investment Committee Memo to Deck Generator
Turn the DCF range into a sharper approval memo and slide outline.
Valuation Presentation Guide
See how to present DCF, comps, and the enterprise-to-equity bridge clearly.
Board Deck Generator
Use the DCF output inside a broader board recommendation and decision ask.
Common mistakes
Letting terminal growth get too close to WACC and creating a mathematically fragile valuation.
Treating one DCF point estimate as truth instead of showing what changes the range.
Ignoring the enterprise-value to equity-value bridge and leaving net debt buried in backup.
Using a terminal multiple with no link back to real peer trading or transaction logic.
Forecasting five years of improvement without explaining what operational actions create the cash-flow step-up.
Limitations
This page intentionally keeps the model lightweight. It does not forecast taxes, working capital turns, debt paydown, or multiple operating scenarios in detail. Use it for fast valuation framing and assumption pressure-testing, then move into a full model when diligence, lenders, or auditors need granularity.
Frequently asked questions
Should DCF lead the valuation story or support it?
That depends on the decision. DCF usually leads when long-duration cash flow, capital allocation, or scenario logic matters more than today’s market multiple. In many board and IC decks, DCF works best as the anchor and comps act as the cross-check.
What should I use for terminal growth?
For mature businesses, teams usually keep terminal growth modest and below long-run nominal GDP expectations. The exact rate should match the company’s durable reinvestment capacity, market maturity, and inflation assumptions.
When should I use an exit multiple instead of perpetuity growth?
Exit multiples are common when the audience naturally thinks in transaction comps, sponsor exits, or market-based valuation bands. Perpetuity growth is often cleaner when the debate is about long-run operating economics rather than a hypothetical sale multiple.
Why does terminal value matter so much?
Because a large share of enterprise value usually sits beyond the explicit forecast period. That is why discount rate, terminal growth, and exit multiple assumptions deserve explicit sensitivity analysis in any serious deck.
Does this replace a full valuation model?
No. This tool is for fast decision support, slide-ready framing, and assumption pressure-testing. A full model should still handle detailed revenue build, working capital, debt schedule, taxes, and scenario logic.
Turn the valuation into an executive-ready deck
Use the calculator first, then generate a board or IC slide that explains the answer-first valuation view, what drives the range, which assumptions are fragile, and how enterprise value bridges into an equity conclusion.