Components
Explicit period FCFs capture near-term growth.
Terminal value assumes perpetual growth below discount rate.
Key takeaways
- Terminal value often dominates DCF
- Small WACC changes move valuation materially
Related calculators
Apply these concepts with formula-based tools on Calculator Factory.
- FinanceDCF Valuation Calculator
Estimate enterprise value using discounted free cash flow projections and a Gordon growth terminal value model.
- FinanceWACC Calculator
Calculate weighted average cost of capital from equity and debt weights, costs, and the corporate tax rate.
- FinanceNPV Calculator
Calculate net present value for a series of cash flows at a given discount rate to evaluate project profitability.
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FAQ
- FCF vs dividends?
- Enterprise DCF uses unlevered free cash flow; equity DCF uses dividends or FCFE.