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Change any assumption and the forecast, the valuation waterfall and the sensitivity table recompute instantly. It opens on a fully worked example — swap in your own company when you are ready. Everything runs in your browser; nothing is uploaded.
Why this matters
The three places a DCF is most often wrong — and how to read them.
WACC is the whole engine
WACC is the blended return the providers of capital — lenders and shareholders — require to fund this business. It is your discount rate: a shilling next year is worth less than a shilling today, and WACC sets how much less. Raise it and every future cash flow shrinks, the distant ones most of all.
The terminal value usually dominates
The terminal value captures every cash flow beyond the forecast, so it is normally the largest single piece of the answer — often 60–80% of enterprise value. That is expected, but it means the valuation leans heavily on two figures you cannot look up: the perpetual growth rate and the discount rate. When it climbs past ~75% of EV, treat the number with care and cross-check it against an exit multiple.
Keep g below WACC
The Gordon formula divides by (WACC − g). If g reaches or passes WACC, the maths describes a business out-growing its own discount rate forever, and the value runs to infinity. Keep g comfortably below WACC — and below long-run economic growth, roughly 2–4%. It is a perpetual rate, not next year's growth.
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