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Intrinsic Value DCF Calculator

Estimate the true worth of any company using a two-stage Discounted Cash Flow model — the same methodology used by Warren Buffett and institutional investors worldwide.

Enter Company Data
Find free cash flow and shares outstanding in the company's annual report, Yahoo Finance, or Morningstar.
Operating cash flow minus capital expenditures, in millions
15%
High-growth phase — base this on historical revenue/FCF growth
8%
Maturation phase — typically lower as company scales
Long-term GDP growth (2–3%)
Required return (8–12% typical)
Diluted shares outstanding
For margin of safety calculation
Valuation Results
DCF intrinsic value with base, bull, and bear scenarios
Enter company financials to see the DCF valuation with three scenarios.
How the Two-Stage DCF Model Works
IV = Σ [FCF × (1 + g)^t / (1 + r)^t] + Terminal Value / (1 + r)^10
Terminal Value = FCF₁₀ × (1 + g_term) / (r − g_term)

The Discounted Cash Flow model estimates what a company is worth by projecting its future cash flows and discounting them to today's value. This two-stage approach uses:


Stage 1 (Years 1–5): A higher growth rate reflecting the company's current competitive advantages and growth trajectory.

Stage 2 (Years 6–10): A lower growth rate as the company matures and growth naturally decelerates.

Terminal Value: Captures the company's value beyond year 10 using a perpetuity growth model, assuming the company grows at a rate approximating long-term GDP growth.


As Buffett says: "Intrinsic value is the discounted value of the cash that can be taken out of a business during its remaining life." When the market price is significantly below this intrinsic value, you have a margin of safety.

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Disclaimer: This calculator is for educational purposes only and does not constitute financial advice. DCF models involve significant assumptions about future growth and discount rates. Small changes in inputs can produce large changes in output. Always validate assumptions with independent research and consult a qualified financial advisor before making investment decisions. LIUV does not guarantee the accuracy of user-entered data or projections.