How to use this calculator
- Enter forecast annual unlevered free cash flows, annual effective discount rate (%), perpetual terminal growth (%), debt and debt-like claims, nonoperating cash.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Assumptions and limitations
Terminal growth must be below discount rate, and final cash flow nonnegative. No share-price feed, forecast validation or investment recommendation is implied.
Worked example
Two forecast annual FCFFs of 500, a 10% discount rate and 0% perpetual growth imply enterprise value 5,000. Less debt 1,000 plus cash 200 gives equity value 4,200.
What the result means
Model enterprise and equity value from your own forecast and terminal assumptions.
Common questions
How is the calculation performed?
Enterprise value = sum of discounted forecast FCFF + discounted terminal value. Terminal value = final forecast FCFF × (1+g)/(discount−g). Equity bridge = enterprise value − debt + cash.
What does the model leave out?
Terminal growth must be below discount rate, and final cash flow nonnegative. No share-price feed, forecast validation or investment recommendation is implied.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.