# Discounted Cash Flow(DCF) Calculator

It is an online tool for investment and used to figure out the net present value / discounted cash flow / calculated fair value of an investment.

# Results

Discounted Cash Flow (DCF) = **12.73**

Over / Under Value Percentage = ** +685.25%**

Years | Discounted Cash Flow (DCF) / Calculated Fair Value | Over / Under Value Percentage |
---|---|---|

#1 | 2.86 | +3392.06% |

#2 | 5.60 | +1686.64% |

#3 | 8.21 | +1118.57% |

#4 | 10.58 | +845.33% |

#5 | 12.73 | +685.25% |

__Terminology Used in this Calculator__ :

Earnings Growth (%) - Expected Annual rate of growth for earnings per share.

Discount Rate (%) - guaranteed return.

Years of Above Growth - Number of years to use near term growth numbers.

Perpetual Growth (%) - Perpetual growth in EPS or FCFPS after the near term growth ends.

## Discounted Cash Flow Formula

The discounted cash flow is a quantification method used to evaluate the attractiveness of an investment opportunity.Discounted Cash Flow is a term used to describe what your future cash flow is worth in today's value. This is also known as the present value (PV) of a future cash flow.

DCF Formula = CF_{t} /( 1 +r)^{t}

DCF = discounted cash flow

R = appropriate discount rate given the riskiness of the cash flows

t = life of the asset, which is valued.

**Perpetual Growth Rate Method**, the terminal value is calculated as

TV_{n} = CF_{n} (1+g)/( WACC-g)

TV_{n} = Terminal Value at the end of the specified period

CF_{n} = represents the cash flow of the last specified period

g = growth rate

WACC = Weighted Average Cost of Capital.

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