Calculate any stock's intrinsic value with a full 10-year discounted cash flow model plus Gordon terminal value. Enter free cash flow, growth, terminal growth, discount rate, and shares — the calculator returns a per-share fair value you can compare against the current market price.
Trailing 12-month free cash flow from the 10-K / 10-Q.
Be conservative — even great businesses rarely sustain >15%.
Use 2–3% (long-run GDP). Must be below discount rate.
8–10% for stable blue chips, 12–15% for higher risk.
Compare against the current share price. A 30%+ discount is a Buffett-style buy zone — assuming a durable moat and trustworthy management.
A Discounted Cash Flow (DCF) model values a business as the present value of every dollar of free cash flow it will produce over its remaining life. The intuition: a dollar received in ten years is worth less than a dollar today, so future cash flows are discounted at a required rate of return.
Intrinsic value = Σ (FCFt / (1 + r)t) for t = 1 to N, plus a terminal value: TV = FCFN+1 / (r − g), discounted back to today. Divide by shares outstanding to get the per-share fair value.
A company generates $5B of free cash flow, grows it 8% per year for 10 years, then 3% forever. With a 10% discount rate and 1B shares, the DCF gives ~$118 per share. If the stock trades at $80, that's a 32% margin of safety.
Disclaimer: This is not financial advice. All analyses are for educational purposes only. Always do your own research (DYOR) and consult a licensed financial advisor before making investment decisions. Past performance does not guarantee future results.
