Intrinsic value: non-constant growth and FCF (Vop)
Enter a growth rate for each year; dividends or free cash flows, the terminal value and P₀ are calculated on a timeline, with every step shown.
Inputs
Each year's growth rate in the table is applied to it.
The discount rate for the stock's risk.
Growth after the last forecast year, forever. Must be below rs.
Set the growth rate for each year in the table, then press Calculate P₀. The example (D0 $6.56; 25%, 25%, 20%, 20%, 8%; then 2%; rs 15%) gives $101.52.
Dividend timeline
| Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|---|
| Growth rate (%) | 2.00% | ||||||
| Dividend, D | 6.56 | 8.20 | 10.25 | 12.30 | 14.76 | 15.94 | — |
| Future stock price, P5 | |||||||
| Total cash flow | — | — | — | — | — | ||
| PV at 15.00% | — | — | — | — | — |
D₀ = $6.56. Edit the growth rates right in the table; the green column is year 6, the first year of constant growth.
About this calculator
Estimate a stock's intrinsic value when growth changes over time. Enter a growth rate for each forecast year: the calculator builds each year's dividend, the terminal (horizon) value once growth becomes constant, and discounts every cash flow to today. The free cash flow version finds the value of operations (Vop) at the WACC, then adds cash and short-term investments and subtracts debt and preferred stock to get the value per share.
Formula
P0 = Σt=1N Dt(1 + rs)t + PN(1 + rs)N, PN = DN+1rs − g; Vop = Σ FCFt(1 + WACC)t + HVN(1 + WACC)N, value per share = Vop + cash − debt − preferredshares
- The terminal value is placed in the last forecast year and added to that year's cash flow.
- Every step uses full precision; values are rounded to two decimals only for display.
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