A two-stage Discounted Cash Flow (DCF): each year's free cash flow in the projection window is entered independently — more realistic than assuming one constant growth rate compounds forward, since real cash flow rarely grows at an identical rate every year — then the final projected year is assumed to settle into a slower perpetual growth rate forever after (the terminal value), and both pieces are discounted back to today at the discount rate. This is the classic way analysts estimate what a company (or a share of one) is actually worth, independent of what the market is currently paying for it. Because the free cash flow here is per-share (equity-level), the correct discount rate is the cost of equity — not WACC, which only applies when discounting a whole firm's unlevered cash flow to an enterprise value. The result is only as good as the assumptions — small changes to the terminal growth or discount rate move the answer a lot, so treat it as a range, not a precise price target; the sensitivity table below shows how much it actually moves.

🇵🇹 Use free cash flow per share (not total company FCF) — that's what this calculator assumes, so the correct discount rate is your cost of equity, not WACC (WACC is for discounting a whole firm's unlevered cash flow). This model is sensitive to its inputs — always sanity-check your assumptions against the company's actual cost of capital and long-run economic growth, and use the sensitivity table below rather than trusting a single number.