How to compute intrinsic value with a simple DCF

1. Year-1 free cash flow

   "Free cash flow (year 1)" is the FCF you forecast for the FIRST forecast year — already grown to year 1, not the base year. The model grows it by the terminal rate each subsequent year.

2. Discount rate %

   "Discount rate %" is your required return (usually the WACC). Must exceed terminal growth — otherwise the perpetuity term explodes, and the tool throws "Discount rate must exceed terminal growth."

3. Terminal growth %

   "Terminal growth %" is the perpetuity growth rate after the explicit forecast window. Keep it conservative — 1–3% is typical (broadly aligned with long-run GDP).

4. Forecast years and Run

   "Forecast years" is the explicit window before terminal value kicks in (default 5). Output is presentValue = sum of discounted FCFs + present value of terminal Gordon-growth value, rounded to 2 decimals.