DCF Valuation Calculator (Simplified)
A simplified discounted-cash-flow model: project free cash flow for a few years, add a terminal value, and discount everything back at your cost of capital. Best for companies with predictable cash flow.
Your numbers
- PV of projected cash flows
- $4.53M
- PV of terminal value
- $6.38M
- Terminal value share of EV
- 58.5%
Fund Force runs an AI analysis of your market and matches you with investors, accelerators and grants that fit your stage and sector.
Get matched with Fund Force →Cash-flow projection
| Year | Free cash flow | Present value |
|---|---|---|
| 1 | $1M | $833.3K |
| 2 | $1.25M | $868.1K |
| 3 | $1.56M | $904.2K |
| 4 | $1.95M | $941.9K |
| 5 | $2.44M | $981.1K |
The formula, in plain English
- Enterprise value = Σ FCFₜ ÷ (1 + WACC)ᵗ + TV ÷ (1 + WACC)ⁿ
- Terminal value (Gordon) = FCFₙ × (1 + g) ÷ (WACC − g)
- Equity value = Enterprise value − Net debt
Frequently asked questions
Should early-stage startups use DCF?
Rarely on its own — early cash flows are negative and highly uncertain. It is more useful for profitable, predictable businesses.
What discount rate should a startup use?
Far higher than a public company: 20–40% for young startups to reflect the risk of failure; 10–15% for mature, profitable firms.
What terminal growth rate is sensible?
Something close to long-run nominal GDP growth — usually 2–5%. It must always be below the discount rate.
Results are estimates for planning and education — not financial, legal or tax advice.