Tentt

DCF Calculator

Discounted cash flow calculator for private company and M&A valuation. Includes WACC builder, terminal value toggle, and sensitivity heatmap.

Terminal value method

Equity value

$298,563,005

Enterprise value

$318,563,005

PV of explicit FCF

$87,662,867

PV of terminal value

$230,900,139

72.48% of EV

Terminal value (undiscounted)

$371,866,982

Discounted cash flow projection

YearFCFDiscount factorPresent value
Y1$20,000,0000.9091$18,181,818
Y2$21,600,0000.8264$17,851,240
Y3$23,328,0000.7513$17,526,672
Y4$25,194,2400.6830$17,208,005
Y5$27,209,7790.6209$16,895,132
Sum of PV (FCF)$87,662,867
100% private

Your numbers never leave your browser. Tentt has no backend, no database, and no record of anything you type into this calculator — the math runs entirely on your device. Output is for illustrative modelling only and does not constitute investment, tax, legal, or accounting advice; verify any number you intend to act on.

What is a DCF valuation?

Discounted cash flow valuation is the foundational intrinsic-value method in finance. It estimates the worth of a business by treating it as a stream of future free cash flows and translating each of those cash flows back into a present-value dollar amount at the company's cost of capital. The sum of all present values — explicit forecast plus terminal value — is the enterprise value. Subtracting net debt produces the equity value, and dividing by shares outstanding gives the implied per-share intrinsic value.

Stock-ticker DCF tools (GuruFocus, AlphaSpread, ValueInvesting.io) dominate the SERP for "DCF calculator" because public-equity investors use them to filter idea lists. But for private company and M&A use cases — the workflow most middle-market PE associates and corporate development teams care about — the SERP thins out dramatically. The general calculators (GigaCalculator, OmniCalculator) lack multi-scenario analysis, and most paid templates are Excel downloads gated behind email signups. This page is the comprehensive free DCF calculator for private company and M&A valuation: a configurable WACC, both terminal value methods, an equity-value bridge, and a freshness-flagged warning when terminal value dominates the result.

The DCF formula

A DCF has three components: an explicit free cash flow projection over a fixed number of years, each year discounted back to present value at WACC, and a terminal value capturing everything beyond the explicit period.

Present value of FCF in year t

PV(t) = FCF(t) / (1 + WACC) ^ t

Terminal value (Gordon Growth)

TV = FCF(t+1) / (WACC − g) where g = terminal growth rate

Terminal value (exit multiple)

TV = Exit Multiple × Terminal-year EBITDA

Enterprise value

EV = Σ PV(t) for t = 1..N + (TV / (1 + WACC) ^ N)

Equity value

Equity = EV − Net Debt

Worked example

Worked example

A private company generates $20M of unlevered free cash flow in year 1, growing at 8% per year over a 5-year explicit forecast period. WACC is 10%; long-run terminal growth is 2.5%; net debt is $20M.

Year-by-year FCF: $20M, $21.6M, $23.3M, $25.2M, $27.2M. Discounted at 10%: $18.2M, $17.9M, $17.5M, $17.2M, $16.9M. Sum of PV (explicit FCF): ~$87.7M.

Terminal value: $27.2M × 1.025 / (0.10 − 0.025) = ~$372M undiscounted. Discounted back to year 0 at 10% over 5 years: ~$231M.

Enterprise value: $87.7M + $231M = ~$319M. Equity value: $319M − $20M = ~$299M. Terminal value share of EV: ~72% — within the normal 60–80% range.

Cross-checking the result

No serious M&A or PE diligence relies on a DCF in isolation. The standard practice is to triangulate three methods: an unlevered DCF for intrinsic standalone value, an LBO returns analysis for what a financial sponsor would pay, and a precedent transactions analysis for what comparable deals have closed at recently. If the three methods produce wildly divergent numbers, one of the underlying assumption sets is wrong; if they cluster in a 15% band, the valuation is defensible.

The two assumptions that drive almost all the variance in a DCF output are WACC and terminal growth (or exit multiple). The sensitivity table generator on this site lets you sweep both at once and produce the standard 2D heatmap that every sell-side research note includes. For the EBITDA quality question that ultimately drives the FCF projection, use the EBITDA bridge calculator to verify the normalised earnings power of the business before you start projecting.

Frequently asked questions

What is a discounted cash flow valuation?
A DCF valuation estimates the intrinsic value of a business by projecting its future unlevered free cash flows over an explicit forecast period (typically 5 to 10 years), discounting each year's cash flow back to present value at the company's weighted average cost of capital (WACC), and adding a terminal value that captures everything beyond the explicit period. The sum of those discounted cash flows is the enterprise value; subtracting net debt gives the equity value, and dividing by shares outstanding gives the implied per-share intrinsic value.
How is terminal value calculated?
Two methods are common. The Gordon Growth (perpetuity growth) method assumes free cash flow grows forever at a constant rate after the explicit forecast period: TV = FCF × (1 + g) / (WACC − g), where g is the long-run sustainable growth rate (typically 2.0% to 3.0%, often pegged to long-run inflation). The exit multiple method applies an EV/EBITDA multiple to terminal-year EBITDA: TV = exit multiple × terminal EBITDA. Sell-side analysts usually report both methods as a sanity check; if the two terminal values diverge by more than 15%, one of the two assumption sets is probably wrong.
What WACC should I use?
WACC is the blended after-tax cost of the company's debt and equity capital, weighted by the market value mix of each. The cost of equity is typically derived from the CAPM formula (risk-free rate + equity beta × equity risk premium), and the after-tax cost of debt is the company's marginal borrowing rate times (1 − tax rate). For US large-cap public companies, WACC usually lands between 7% and 10%. For middle-market private companies, 9% to 13% is more typical because the equity risk premium is higher and the debt is more expensive. Use the higher end for early-stage or volatile businesses.
Why is terminal value usually 60% to 80% of total EV?
Because most of the value of any going concern is captured in the perpetual cash flows beyond the explicit forecast period — the explicit forecast just captures the first 5 to 10 years out of an infinite stream. A terminal value share of 60% to 80% is normal and not a flag. The flag is when terminal value exceeds about 80% of total EV, which means the explicit forecast is contributing almost nothing and the valuation is essentially a single-line terminal value calculation. The calculator above warns when terminal value exceeds 75% of EV.
Should I use DCF for a private company?
Yes, but with two adjustments. First, increase the WACC to reflect the higher cost of equity for private companies (illiquidity premium, smaller equity risk premium adjustment, higher beta). Second, treat the terminal value with extra skepticism — private companies often have less predictable long-run cash flow patterns and the perpetuity assumption is harder to defend. Most middle-market PE buyers cross-check a DCF valuation against an LBO returns analysis and a comparable transactions analysis, and reject any deal where the three methods diverge sharply.
What is a reverse DCF?
A reverse DCF starts from the company's current market price and solves for the implied long-run growth rate that would justify that price. If the implied growth rate is reasonable relative to the company's competitive position and historical performance, the stock is fairly valued; if the implied growth rate is unrealistically high, the stock is overvalued; if it is well below realistic, the stock is undervalued. It is the standard intrinsic-value technique used by value investors to filter for opportunities. The forward DCF on this calculator can be run as a reverse DCF by iterating on the FCF growth assumption until equity value matches the current market cap.

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