What is the difference between using FCFF and EPS in the DCF calculator?

The calculator allows you to value a company using free cash flow to the firm (FCFF), which looks at cash available to all investors, or earnings per share (EPS), which focuses on equity value per share. Choose FCFF if you have firm-level cash flow data; use EPS if you are analyzing per-share metrics and have earnings data available.

How does the perpetual growth rate affect the DCF result?

The perpetual growth rate is applied to cash flows beyond the explicit projection period to calculate a terminal value, which represents the company's value into infinity. A higher growth rate increases the terminal value and the overall intrinsic value, while a lower rate decreases it; the rate should typically not exceed the long-term GDP growth of the country where the company operates.

Can I use this tool if I only have annual revenue and net income, not free cash flow?

Yes, you can use the earnings per share (EPS) input method if you have net income and shares outstanding rather than free cash flow figures. The calculator will discount the EPS projections to present value, allowing you to estimate intrinsic value without needing a full cash flow statement.

What does the WACC input represent and how should I choose a value?

The weighted average cost of capital (WACC) is the discount rate used to bring future cash flows back to present value. It reflects the average rate of return required by both equity and debt holders. A typical approach is to use a company-specific WACC from financial databases or estimate it using the capital asset pricing model (CAPM), but the accuracy of the valuation depends heavily on this rate being realistic for the business being analyzed.

Investment AnalysisFree Tool

Discounted Cash Flow Calculator (DCF)

Provided byOmni Calculatoromnicalculator.com

Discounted cash flow calculator helps you with the valuation of a company by using the free cash flow to the firm and...

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About this tool

What Discounted Cash Flow Calculator (DCF) does

The Discounted Cash Flow Calculator on Omni Calculator helps users estimate the intrinsic value of a company or investment by projecting future free cash flows and discounting them to present value using the weighted average cost of capital (WACC). Users input forecasted cash flows, growth rates, and WACC to see a calculated fair value, which can then be compared against the current market price to assess whether a security is undervalued or overvalued. The tool supports both free cash flow to the firm (FCFF) and earnings per share (EPS) methodologies, providing flexibility depending on the available financial data. The interface presents input fields for each projection year and key parameters side-by-side, with a dedicated section for WACC components and perpetual growth assumptions. Compared to other DCF tools, Omni Calculator’s version is embedded within a broader finance suite, offering quick access to related calculators like FCFF and EPS, and includes plain-language explanations of concepts such as terminal value and share price implications directly on the page, making it more accessible for users who are new to valuation modeling.

Step by step

How to use the Omni Calculator Discounted Cash Flow Calculator (DCF)

1
Enter the first projected free cash flow (FCFF) amount in the designated field
2
Enter the second projected free cash flow (FCFF) amount, or subsequent years' cash flows, as needed
3
Input the weighted average cost of capital (WACC) rate that will be used as the discount rate
4
Specify the perpetual growth rate for cash flows beyond the projection period
5
View the calculated intrinsic value and share price result, which can be compared to the current market price to determine undervaluation or overvaluation

Is it right for you

Best for

Investment analysts, students, and individual investors who need a quick, intuitive way to perform a DCF valuation without building a spreadsheet, especially those who want to compare the result to a current share price and explore related

Limitations

Relies on user-projected cash flow estimates, which can significantly affect the valuation outcome
Uses a single WACC input; does not model complex capital structure changes over time
Results are estimates and should be validated with additional financial analysis and other valuation methods

Questions

Discounted Cash Flow Calculator (DCF) FAQ

What is the difference between using FCFF and EPS in the DCF calculator?: The calculator allows you to value a company using free cash flow to the firm (FCFF), which looks at cash available to all investors, or earnings per share (EPS), which focuses on equity value per share. Choose FCFF if you have firm-level cash flow data; use EPS if you are analyzing per-share metrics and have earnings data available.
How does the perpetual growth rate affect the DCF result?: The perpetual growth rate is applied to cash flows beyond the explicit projection period to calculate a terminal value, which represents the company's value into infinity. A higher growth rate increases the terminal value and the overall intrinsic value, while a lower rate decreases it; the rate should typically not exceed the long-term GDP growth of the country where the company operates.
Can I use this tool if I only have annual revenue and net income, not free cash flow?: Yes, you can use the earnings per share (EPS) input method if you have net income and shares outstanding rather than free cash flow figures. The calculator will discount the EPS projections to present value, allowing you to estimate intrinsic value without needing a full cash flow statement.
What does the WACC input represent and how should I choose a value?: The weighted average cost of capital (WACC) is the discount rate used to bring future cash flows back to present value. It reflects the average rate of return required by both equity and debt holders. A typical approach is to use a company-specific WACC from financial databases or estimate it using the capital asset pricing model (CAPM), but the accuracy of the valuation depends heavily on this rate being realistic for the business being analyzed.

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