What's the business actually worth?
Discounted cash flow with terminal value and a sensitivity table. Project FCF, pick a WACC and terminal growth, and we'll show you the implied per-share value — plus how much of that value is the terminal.
Built and reviewed by Stephen Omukoko Okoth
Mathematical Economist · ex-Morgan Stanley FI · Equilar
Inputs
Free cash flow projection
Inputs
Discount rate & terminal value
Inputs
From enterprise to equity
Verdict
$ 18 per share
Enterprise value $ 1.8K • 75.6% from terminal
The terminal value is doing 75.6% of the work. If that share is above 75%, your valuation hinges almost entirely on perpetual-growth assumptions — extend the projection period or reduce terminal growth to test robustness.
Result
The decomposition
Sum of explicit FCFs
$ 450
Years 1-5, present-valued
Terminal value (PV)
$ 1.4K
Enterprise value
$ 1.8K
Equity value
$ 1.8K
EV − net debt
Per share
$ 18
Terminal share of EV
75.6%
Sensitivity
Per-share value across WACC × Terminal growth
| WACC \ g | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.00% | $ 18.59 | $ 19.87 | $ 21.39 | $ 23.20 | $ 25.43 |
| 8.50% | $ 17.19 | $ 18.26 | $ 19.52 | $ 21.01 | $ 22.80 |
| 9.00% | $ 15.97 | $ 16.89 | $ 17.95 | $ 19.18 | $ 20.64 |
| 9.50% | $ 14.91 | $ 15.70 | $ 16.60 | $ 17.64 | $ 18.85 |
| 10.00% | $ 13.97 | $ 14.65 | $ 15.43 | $ 16.31 | $ 17.33 |
Highlighted cell is your input scenario. Notice how the value moves across plausible parameter shifts — that's the real range your DCF supports.
FCF projection
Year-by-year
Common questions
What is a DCF?
Discounted Cash Flow — the model that values a business by projecting its future free cash flows and discounting them back to today's dollars at the appropriate cost of capital. The textbook intrinsic-value framework, and the basis for nearly every fundamental valuation that gets done.
What is WACC?
Weighted Average Cost of Capital. The blended cost of debt and equity, weighted by capital structure, used as the discount rate for unlevered free cash flows. Higher WACC = future cash flows are worth less today = lower implied value.
What is terminal value?
The value of all cash flows beyond the explicit projection period. Two methods: Gordon growth (FCF × (1+g) / (WACC−g)) or exit multiple (terminal year EBITDA × multiple). Often 60-80% of total enterprise value, so small terminal-value assumptions drive big valuation differences.
How sensitive is a DCF to assumptions?
Famously sensitive. A 100bp shift in WACC or 100bp shift in terminal growth can move enterprise value by 15-25%. Always run a sensitivity table — never quote a point estimate without it. The DCF tells you where reasonable assumptions can land you, not 'the' value.