DCF Valuation Calculator That Values Future Cash Flows Today
Businessappraisal estimates value with a discounted cash flow model that projects your future cash flows and brings them back to today using a discount rate. You enter your numbers and it returns a range, so you can see how growth assumptions and risk change what a business is worth.
Last updated July 2026
Estimated business value
Method breakdown
What moves this number
Estimate, not a certified appraisal. Your figures are not stored.
In short
A DCF valuation calculator estimates the worth of a business by projecting its future cash flows and discounting them to present value using a discount rate that reflects risk. Businessappraisal builds a multi-year projection from your revenue and margins, then applies a discount rate, often in the 10 to 20 percent range for private companies, plus a terminal value to capture cash flows beyond the forecast. It returns a low-to-high range and shows the assumptions behind it rather than a single promised figure. This is an educational estimate to inform your planning, not a certified appraisal or financial advice.
What you get
DCF valuation, for founders, buyers, and sellers
Values the future, not just today
A DCF captures where a business is heading, so a company with strong projected growth can estimate higher than its current profit alone suggests.
Risk shown as a discount rate
Private companies are often discounted at 10 to 20 percent, and Businessappraisal shows the rate it used so higher risk visibly lowers the estimate.
Terminal value included
The model adds a terminal value for cash flows beyond the forecast window, which is a major driver of the final range.
Assumption-driven range
Because growth and discount inputs are visible, you can see how sensitive the estimate is and stress-test it yourself.
How it works
From your numbers to a value range in four steps
Enter your financials
Provide revenue, margins, and an expected growth outlook so Businessappraisal can project future cash flows.
AI applies the method
It discounts each projected year to present value using a risk-based discount rate and adds a terminal value.
Get the value range
You receive a low-to-high estimate with the discount rate and assumptions shown, framed as an educational estimate.
Understand the drivers
See how growth, margins, and the discount rate move the estimate so you know which assumptions matter most.
Questions
DCF valuation questions people ask
What is a discounted cash flow valuation?
A DCF values a business as the sum of its projected future cash flows, each discounted back to today at a rate that reflects risk. A dollar of profit expected in five years is worth less than a dollar today, and the discount rate quantifies by how much. The result is what the future earning power of the business is worth right now.
How does a discounted cash flow calculator work?
It projects several years of cash flow from your revenue, margins, and growth assumptions, discounts each year to present value, then adds a terminal value for everything beyond the forecast window. Businessappraisal shows the discount rate and assumptions it used, so you can stress-test the estimate instead of trusting a black box.
What discount rate should I use to value a private business?
Private companies are commonly discounted at 10 to 20 percent, well above public-market rates, because their earnings are riskier and their shares are illiquid. A stable business with contracted revenue sits near the low end; a small, owner-dependent, or concentrated business belongs near the high end. Small changes in the rate move the value a lot, which is why the output should be a range.
When is DCF better than a multiple-based valuation?
When the future will not look like the past: a business with accelerating growth, a turnaround, or heavy reinvestment that suppresses current earnings. Multiples price the business as it is today; a DCF prices where it is going. In practice the strongest estimate runs both and treats the gap between them as information about how much of the value depends on the forecast.
More valuation methods
Businessappraisal provides an educational estimate for informational purposes only. It is not a certified appraisal or financial advice. For a formal valuation, consult a credentialed appraiser.
See what your business is worth
Enter your numbers and get an estimate from three methods in minutes, benchmarked against comparable sales, with the drivers explained.