DCF Calculator Excel Template

The DCF Valuation Calculator Excel Template provides a fully interactive discounted cash flow model for estimating the intrinsic value of a business or investment. Whether you're a finance student building your first valuation model, an analyst stress-testing growth assumptions, or a business owner trying to understand what your company is worth, this spreadsheet delivers professional-grade results with complete formula transparency.

What You Can Calculate

This template computes 7 key valuation outputs:

• PV of Projected FCFs — The present value of each year's free cash flow discounted at your WACC, summed across all projection years. This represents the near-term, more certain portion of enterprise value.
• Terminal Value — The estimated value of all cash flows beyond your projection horizon, calculated using the Gordon Growth Model. This captures the long-run business value assuming a stable perpetuity growth rate.
• PV of Terminal Value — The terminal value discounted back to today, showing what those far-future cash flows are worth in present-value terms.
• Enterprise Value — The sum of PV of projected FCFs and PV of terminal value, representing the total value of the operating business.
• Equity Value — Enterprise value minus total debt plus cash, converting business value into what belongs to shareholders.
• Implied Share Price — Equity value divided by shares outstanding, giving you a per-share intrinsic value to compare against market prices.
• TV as % of EV — The proportion of enterprise value driven by terminal value, a key sensitivity indicator. Values above 80% signal high dependence on long-run assumptions.

Required Inputs

To use this calculator, you'll need:

• Projected Free Cash Flows (FCFs) — Your year-by-year estimates of cash generated by the business, entered in millions of dollars. Supports 1–20 projection years.
• Discount Rate (WACC) — The weighted average cost of capital reflecting the riskiness of the cash flows. Typical ranges: 8–12% for established companies, higher for riskier businesses.
• Terminal Growth Rate — The perpetual growth rate assumed after the projection period. Must be less than WACC; typically 2–4% for mature companies.
• Total Debt — Net debt outstanding used in the equity bridge calculation (in millions).
• Cash & Equivalents — Liquid assets added back to enterprise value in the equity bridge (in millions).
• Shares Outstanding — Total diluted share count for the per-share price calculation (in millions).

Methodology

The model uses the standard two-stage DCF approach. Each year's FCF is discounted to present value using the formula PV = FCF_t / (1 + WACC)^t. Terminal value is computed via the Gordon Growth Model: TV = FCF_n × (1 + g) / (WACC − g). Enterprise value equals the sum of all discounted FCFs plus the discounted terminal value. All formulas are visible and editable — right-click the Calculator sheet tab and select Unprotect Sheet to inspect or modify any cell.

Assumptions

This model assumes:

• All cash flows are discounted using end-of-year convention (no mid-year adjustment)
• WACC is constant across all projection periods
• Terminal growth rate is constant in perpetuity
• Equity bridge uses simplified EV − Debt + Cash (no minority interest or preferred stock)
• FCF figures are denominated in millions of dollars

For educational purposes only. Not financial advice.