Free Tool · Valuation
DCF Calculator: Estimate a Company's Intrinsic Value in ₹.
Enter free cash flow, growth, WACC, net debt and shares; after a short form you get intrinsic value per share, a year-by-year table and a sensitivity grid.
Enter free cash flow, growth, WACC, net debt and shares; after a short form you get intrinsic value per share, a year-by-year table and a sensitivity grid.
Enter money in ₹ crore, shares in crore and rates in %. Every figure you type is an assumption, so the result is illustrative.
Growth
From enterprise value to value per share
Enter your details to see your intrinsic value, year-by-year table and sensitivity grid now, plus the free Excel model. It takes 10 seconds.
Updated 10 October 2026 · Market references checked October 2026
Quick answer: A DCF (discounted cash flow) calculator values a company by adding up the cash it should produce in future, converted into today's rupees. This one grows your free cash flow to the firm (FCFF) for 10 years and adds a terminal value for the years after. It discounts everything at your WACC (weighted average cost of capital). Subtract net debt, divide by shares, and you get an intrinsic value per share.
Illustrative example: ₹100 crore of FCFF grows 12% a year for five years, then 8% for five more. With a 12% WACC, 5% terminal growth, ₹150 crore of net debt and 10 crore shares, value comes to about ₹204.95 per share.
A DCF values a business by its future cash, not by its share price. It forecasts the free cash flow the company should generate, then shrinks each future rupee to today's value, because money later is worth less than money now. The total is the company's intrinsic value: what it is worth on its own numbers, whatever the market says today.
It is like pricing a flat by the rent it will earn. If the rent is ₹3 lakh a year (illustrative), you would not pay ₹3 crore for it. That rent arrives slowly and might stop. You pay what all the future rent is worth today. A DCF does the same with a company's cash.
DCF suits steady, cash-generating businesses such as consumer companies, IT services firms and manufacturers. It suits banks and NBFCs (non-banking financial companies) poorly, because for lenders debt is raw material, not financing.
It runs five steps. It grows your base-year free cash flow for ten years at two rates. It discounts each year's cash at your WACC. It adds a terminal value for every year after year 10. It subtracts net debt to reach equity value. Finally, it divides equity value by the number of shares to get a value per share.
PV means present value: a future amount converted into today's rupees. Here g is the terminal growth rate. The calculator uses end-of-year discounting, the simplest convention. Some analysts assume cash arrives mid-year, which gives a slightly higher value.
| Step (illustrative example) | Value |
|---|---|
| Base-year FCFF | ₹100.0 crore |
| PV of FCFF, years 1–10, at a 12% WACC | ₹948.9 crore |
| Terminal value at year 10 (5% growth) | ₹3,884.2 crore |
| PV of the terminal value | ₹1,250.6 crore |
| Enterprise value | ₹2,199.5 crore |
| Less net debt | ₹150.0 crore |
| Equity value | ₹2,049.5 crore |
| Value per share (10 crore shares) | ₹204.95 |
More than half of this illustrative value (57%) comes from the terminal value, so the growth and WACC assumptions matter most.
FCFF is the cash a business has left after paying its running costs, its taxes and the investment it needs to keep growing. It belongs to lenders and shareholders together, which is why you discount it at WACC. The formula is FCFF = EBIT × (1 − tax rate) + D&A − capex − change in working capital.
EBIT is operating profit: earnings before interest and tax. D&A (depreciation and amortisation) is a non-cash cost, so you add it back. Capex (capital expenditure) is cash spent on long-lived assets such as plant. Working capital is cash tied up in stock and unpaid customer bills.
You find the pieces in the annual report. EBIT is in the profit and loss statement, D&A and capex in the cash flow statement, and working capital in the balance sheet. Illustrative example: EBIT is ₹160 crore and the tax rate is 25%. Add back ₹30 crore of D&A, then take away ₹45 crore of capex and a ₹5 crore rise in working capital. FCFF = 160 × 0.75 + 30 − 45 − 5 = ₹100 crore.
Use a higher rate for the next five years if the business is expanding, then a lower rate for years six to ten as it matures. Terminal growth is the rate the company can keep up forever, so keep it modest. It must stay below WACC, and Damodaran's rule of thumb keeps it at or below the risk-free rate.
Why below WACC? The terminal value formula divides by (WACC − g). As g creeps towards WACC, that gap shrinks towards zero and the value shoots towards infinity. Why modest? No company can outgrow the whole economy forever, or it would end up bigger than the economy. For rupee models, the ≈10-year G-Sec yield (7.29% on 8 Oct 2026, RBI) is a sensible ceiling.
Base growth on drivers you can defend, such as volumes, prices or capacity, and check that capex in your base cash flow can pay for it.
Terminal value covers every year after year 10, which is most of a healthy company's life. So it often makes up half or more of enterprise value. That is normal, but it means small changes in WACC or terminal growth swing the answer. Always read the sensitivity grid in your result, not just the single number at the top.
| Value per share (illustrative) | g = 4% | g = 5% | g = 6% |
|---|---|---|---|
| WACC 11% | ₹220.06 | ₹244.16 | ₹277.91 |
| WACC 12% | ₹188.28 | ₹204.95 | ₹227.18 |
| WACC 13% | ₹163.68 | ₹175.65 | ₹191.04 |
From the ₹204.95 base case, one percentage point on WACC or terminal growth moves value by about ₹17 to ₹39 per share, so quote a range, not one number.
Enterprise value is the worth of the whole business, owed to lenders and shareholders together. To find the shareholders' part, subtract net debt: borrowings minus cash. If the company holds more cash than debt, net debt is negative and adds to equity value. Then divide equity value by the number of shares outstanding.
Watch the units: ₹ crore ÷ crore shares gives ₹ per share. Full models also subtract minority interest (the part of subsidiaries owned by outside shareholders) and add spare investments; fold those into net debt here. To cross-check against market prices, see our comparable company analysis guide.
A DCF calculator estimates what a company is worth today from the cash it should generate in future. You enter free cash flow, growth rates, WACC, net debt and shares. It returns enterprise value, equity value and an intrinsic value per share, plus a grid showing how that value changes with your assumptions.
Use a WACC built from the company's own risk and mix of debt and equity. With the October 2026 defaults, a company with a beta of 1.0 has a cost of equity of about 14.21%. That uses 7.29% for the 10-year G-Sec and Damodaran's 6.92% India equity risk premium (July 2026 update). Work out your rate in the free WACC Calculator; this page pre-fills it on the same device.
Keep it modest and below WACC. A common guide from Professor Aswath Damodaran is that stable growth should not exceed the risk-free rate, which was 7.29% for the 10-year G-Sec on 8 Oct 2026. Test a few rates in the sensitivity grid before you settle on one.
Most of a DCF's value sits far in the future, and discounting compounds over many years. The terminal value also divides by WACC minus growth, which is a small number. In the illustrative example on this page, cutting WACC from 12% to 11% lifts value per share from ₹204.95 to ₹244.16.
Yes. After you see your result, you can download a free Excel model with a live formula on every output line. It has WACC, DCF, sensitivity and notes tabs, so you can rebuild the valuation step by step.
Illustrative only. This DCF Calculator is a learning tool, not investment advice, a target price or a recommendation to buy or sell any security. Every company figure is an assumption you enter; market references are dated (see Official sources above).
