Finance & valuation scenarios
Business DCF Valuation Scenarios Calculator
Discount three explicit annual cash flows and a declared terminal-growth scenario, then subtract signed net debt.
121 / ENTERED SCENARIO
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INPUT GROUP 01
Three forecast year-end cash flows
INPUT GROUP 02
Terminal and financing assumptions
Check the assumptions before acting on a result.
Read the method and exampleYOUR CALCULATION
Three explicit year-end cash flows plus a Gordon-growth terminal scenario.
Enterprise value less signed net debt
Terminal value at end of year 3
Terminal value present amount
Discount-rate sensitivity, unchanged forecasts and growth
| Discount rate | Enterprise value | Equity value |
|---|---|---|
| 10.00% | $1,300.00 | $1,200.00 |
| 11.00% | $1,179.37 | $1,079.37 |
| 12.00% | $1,078.90 | $978.90 |
Illustrative inputs loaded. Replace them with your own assumptions.
How the business dcf valuation scenarios calculator works
This bounded enterprise DCF uses three cash flows at the ends of years 1, 2 and 3. Each is divided by (1 + annual discount rate)^year. Terminal value at the end of year 3 is year-3 cash flow × (1 + perpetual growth) ÷ (discount rate − growth). The growth rate must be below the discount rate.
Each present cash-flow amount and the terminal present amount round separately to cents before they are summed. Signed net debt is then subtracted to obtain the modeled equity value. The sensitivity table increases only the discount rate, holding forecasts, growth and net debt unchanged; it does not represent independently researched cases.
Forecast cash flows, growth and net debt are your inputs. They need a consistent enterprise-cash-flow and nominal/real basis. Negative values remain visible. No company appraisal, market valuation, tax model, cost-of-capital estimate or investment recommendation is supplied.
Worked example
Cash flows of 110, 121 and 133.10 at a 10% discount rate each have a present value of 100. With zero terminal growth, terminal value is 1,331 at year 3 and its present value is 1,000. Enterprise value is 1,300; subtracting 100 net debt gives 1,200 equity value. At 200 net debt, equity value is 1,100.
Sources and assumptions
The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.
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