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Intrinsic value calculator (DCF)
This intrinsic value calculator estimates what a stock is worth using a discounted cash flow (DCF) model: enter the cash flow, its growth, the discount rate and the cash, then compare the intrinsic value per share with the current price to see whether it is cheap or expensive.
Intrinsic value / share
$47.78
Margin vs current price
+139%
With your assumptions, the company is worth around $M 23,890 of equity. At $20.00 per share, the stock would look at a discount versus your intrinsic value.
A DCF is very sensitive to its assumptions (especially growth and the WACC): move the WACC by 1% and the value swings 15-20%. Use it as a range, not an exact number. Educational, not financial advice.
What the intrinsic value of a stock is
The intrinsic value is what a company is really worth thanks to its ability to generate cash, regardless of what the market pays for it today. Price is what you pay; value is what you get. Value investing — from Benjamin Graham to Warren Buffett — is about buying when the price sits clearly below the value, leaving a margin of safety.
The most widely used tool to estimate it is the DCF (discounted cash flow). It is not magic: it just turns one question into a number — how much money will the business generate, and how much is that money worth today. Learn the underlying ideas in the DCF glossary entry.
How intrinsic value is calculated with a DCF
A discounted cash flow starts from a simple idea: a company is worth the sum of all the cash it will generate in the future, brought back to today’s value. Future money is worth less than money today, so it is discounted at a rate that reflects risk (the WACC, or cost of capital).
You project free cash flow for a number of years growing at a chosen rate, add a terminal value (what the business is worth in perpetuity, at a low and stable growth rate) and discount it all back to the present. The result is the value of the company; adding net cash and dividing by the number of shares gives the intrinsic value per share, which you can then compare with the market price.
The catch: the result depends enormously on the assumptions. That is why it pays to use a range — bear, base and bull — together with a margin of safety, never a single number with false precision.
An example of a discounted cash flow valuation
Suppose a company generates $100M of free cash flow, which you expect to grow 8% a year for 10 years and then 2.5% in perpetuity, with a discount rate of 9%. Discounting those cash flows and the terminal value would give an enterprise value of several billion dollars; adding its net cash and dividing by the shares gets you to the intrinsic value per share.
The revealing part is the sensitivity: if you cut growth to 5% or raise the discount rate to 10%, the value can drop 20-30%. That is why a single DCF should never be your only reason to buy. Try different assumptions yourself in the calculator above and watch how the result moves.
Price is not everything: look at quality too
An intrinsic value estimate is only useful if the business behind it is solid. A cheap price on a company that is deteriorating is worth little. So before you trust a number, it pays to look at quality: margins, return on capital, debt and consistency over time.
DeepTicker sums all that up in the DeepTicker Score (0-100) across 5 dimensions, with its 120+ metrics compared against the quartiles of the company’s own sector, and shows you the P/E and the multiples so you can judge the price. That way you combine your own value estimate with an objective read on quality.
Discover the quality of thousands of stocks with the DeepTicker Score and its 120+ metrics. 14-day free trial, no card required.
See the full analysis free →Frequently asked questions
What is the intrinsic value of a stock?
It is what a company is really worth based on the future cash it can generate, regardless of the price it trades at today. Buying below intrinsic value leaves a margin of safety — the core idea of value investing, from Benjamin Graham to Warren Buffett.
How does this DCF calculator work?
It projects free cash flow (FCF) over the years you choose, growing at your chosen rate, adds a terminal value and discounts everything back to today at your discount rate (WACC). The result, plus net cash and divided by the number of shares, is the intrinsic value per share.
What is discounted cash flow (DCF)?
Discounted cash flow (DCF) is the valuation method that estimates what a company is worth from the money it will generate in the future, brought back to today’s value. Because future money is worth less than money today, it is discounted at a rate that reflects risk. It is one of the most widely used ways to estimate the real value of a business.
Why does the result change so much?
A DCF is very sensitive to its assumptions. Moving the WACC by 1% can shift the value 15-20%, and growth matters even more. That is why it is better to work with a range (bear / base / bull) and a margin of safety, not a single number.
How do I know if a stock is cheap or expensive?
Compare the intrinsic value you estimate with the market price. If the value is clearly higher than the price, the stock may be cheap (with a margin of safety); if it is much lower, it would look expensive. Since a single estimate can mislead, use a range (bear / base / bull) and a margin of safety.
What does DeepTicker add on top of this calculator?
DeepTicker sums up the business quality of thousands of stocks with the DeepTicker Score (0-100) and shows you their fundamentals, their P/E and their multiples versus the sector, so you can judge with criteria. You estimate the intrinsic value yourself with this calculator.
This is not financial advice.
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