Discounted Cashflow Analysis

A discounted cash flow analysis (DCF) is one of the most widely used methods of calculating the intrinsic value of a business. This often involves spreadsheets that aren't the easiest to use, having to look at multiple places to find the data, or online calculators that over simplify the process by simply adding a multiplier to previous free cash flows.

That is why I created this calculutor, which shows you the last 5 years of data (green section below, you can hide/show it by the click of a button) , allows you to quickly and easily change specific variables, and finally shows you the entire picture on what your chosen variables mean for the company. It calculates the intrinsic value per share (based on your inputs), as well as shows you a table (yellow section below) that show what your growth rates mean in terms of future revenue/earnings over the next 10 years for the company. This allows you to quickly do a sensitivity analysis, as well as make sure the numbers make sense for the sector your company is in.

We are working on a guide on how to do a discounted cash flow calculation with this calculator: DCF Guide. Alternatively you can check one of my many personal valuations, where I breakdown how I personally value companies using this calculator.

I have based this off Professor Aswath Damodaran's teachings, with some slight modifications. Aswath Damodaran is a professor at Stern School of Business at New York University. He is known as the 'dean of valuation'. I would highly recommend reading some of his books on valuation if you haven't yet. I have suggested a few of my favourites below.

Please enter the stock ticker. Add .to for Canadian stocks.

Netflix, Inc. - NFLX - $883.85

Reported Currency: USD

Sector: Entertainment

Industry: Entertainment

Current Market Cap: $377,808,753,300

Industry Avg Sales To Capital: 1.18

Industry Avg Cost of Capital: 5.38%

Beta: 1.25

Industry Avg Operating Margin: 8.67%

	Current (TTM)	2023-12-31	2022-12-31	2021-12-31	2020-12-31	2019-12-31
Revenue Growth	11.39%	6.67%	6.46%	18.81%	24.01%	-
Revenue	37,565,218,000	33,723,297,000	31,615,550,000	29,697,844,000	24,996,056,000	20,156,447,000
Operting Margin	25.61%	20.62%	17.82%	20.86%	18.34%	12.92%
Operating Income	9,618,630,000	6,954,003,000	5,632,831,000	6,194,509,000	4,585,289,000	2,604,254,000
Interest Expense	643,782,000	748,598,000	706,212,000	765,620,000	1,385,940,000	626,023,000
R&D Expense	2,822,131,000	2,675,758,000	2,711,041,000	2,273,885,000	1,829,600,000	1,545,149,000
Cash/Short Term Investments	9,223,927,000	7,137,886,000	6,058,452,000	6,027,804,000	8,205,550,000	5,018,437,000
Effective Tax Rate	13.35%	12.85%	14.67%	12.39%	13.69%	9.47%
BV of Equity	22,720,736,000	20,588,313,000	20,777,401,000	15,849,248,000	11,065,240,000	7,582,157,000
BV of Debt	15,981,328,000	14,543,261,000	14,353,076,000	15,392,895,000	16,308,973,000	14,759,260,000
Invested Capital	29,478,137,000	27,993,688,000	29,072,025,000	25,214,339,000	19,168,663,000	17,322,980,000
Sales To Capital	1.27	1.20	1.09	1.18	1.30	1.16

Your Variables

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Revenue Growth Year 1

Revenue Growth Year 2-5

Revenue Growth Perpetuity

Operating Margin Year 1

Operating Margin Target

Year of Convergence

Tax Rate Year 1

Marginal Tax Rate

Sales to Capital Year 1

Sales to Capital Years 2-5

Sales to Capital Years 6-10

Cost of Capital Year 1 / Discount Rate

Cost of Capital Year 10 / Discount Rate

Does the firm have any cross holdings/other non operating assets that don't show up in operating income? Yes No

Output (Next 10 Years)

Terminal Cash Flow: $

Terminal Cost of Capital:

Terminal Value : $

Present Value (Terminal Value) : $

Present Value (CF of Next 10 Years): $

Sum of Present Values : $

Sum of Present Value - Debt + Cash: $

# of Shares: 427,458,000

Intrinsic Value Per Share: $

	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10	Terminal Year
Revenue Growth
Revenue
Operating Margin
Operating Income
Tax Rate
EBIT (1-t)
Reinvestment
FCFF
Cost of Capital
Cumulated Discount Factor											-
PV of FCFF											-

This calculator is meant for informational/entertainmenet purposes only. All numbers should be independantely verfied. We are not responsible for any investment losses related to decisions made with the help of this website. We recommend getting professional advice before making any investment decisions. This calculator is meant for informational/entertainment purposes.

Book Recommendations

Discounted Cash Flow (DCF) Calculator for Netflix, Inc. (NFLX)

DCF Analysis that automates a lot of the process and allows for real time sensitivity changes.