Adjust the key inputs below to see how they affect the intrinsic value calculation.
Specify the expected annual growth rates for the company's Free Cash Flow during the explicit 10-year projection period.
How fast the company is expected to grow each year for the first 5 years. Enter a whole number percentage (e.g., 5 for 5%). Leave blank to use historical CAGR.
Expected yearly growth after year 5, as the company matures. Enter a whole number percentage (e.g., 2 for 2%). Leave blank to use 50% of Initial CAGR.
These inputs determine the present value of future cash flows and the estimated value of the company beyond the projection period.
How much return do you expect on this investment each year? Example: Use 10% for a normal company, 12-15% for riskier ones.
How much the company might grow each year after 10 years, forever. Usually 2–4%. Similar to inflation or GDP growth.