Intrinsic value calculator

When the discount rate is below the growth rate the Gordon terminal value is undefined, so the task fails with invalid_input instead of emitting Infinity or a negative price a form might treat as a bargain.

What DCF intrinsic value measures and how the per-share figure is formed

Trailing free cash flow is the starting cash amount in one currency; this endpoint treats it as the cash residual you choose to discount, typically free cash flow to equity when the result should be an equity value. Each forecast year t from 1 through projection_years grows that cash at the constant growth rate g, so FCF_t equals FCF_0 times (1+g) to the t. The sum of the explicit-period present values and the present value of the terminal value is equity_value. Dividing by shares outstanding yields intrinsic_value, the per-share fair value this landing exists to return. When g is constant, that total equals the growing-perpetuity identity FCF_1 divided by (r minus g); projection_years still splits the value between the explicit window and the terminal lump, which is the DCF schedule a memo shows.

Input contract, Gordon constraint, and error behaviour

The distinctive failure this landing exists to catch is a discount rate below the growth rate: Gordon terminal value divides by r minus g, so a discount rate that is not strictly greater than growth is rejected instead of returning Infinity or a negative perpetuity a form might treat as cheap. Example: ten million of free cash flow, five percent growth, ten percent discount, ten projection years, and one million shares yields a per-share intrinsic value of two hundred ten. POST a JSON body with five required finite numbers. free_cash_flow is trailing free cash flow in a single currency unit, with aliases fcf, cash_flow, fcf0, and current_fcf; a negative amount is allowed for a cash-burning firm and yields a negative value. growth_rate is the constant annual growth rate as a percent (eight means eight percent), with aliases g, growth, and growth_percent, and must be greater than negative one hundred so that one plus g stays positive. discount_rate is the annual required return as a percent (twelve means twelve percent), with aliases r, wacc, required_return, and discount, and must likewise keep one plus r positive. projection_years is the explicit forecast length as a positive integer from 1 to 50, with aliases years, n, periods, and horizon. shares is the share count used to convert total present value into a per-share figure, with aliases shares_outstanding, share_count, and shares_issued, and must be strictly greater than zero; pass one when free_cash_flow is already a per-share amount. Each numeric field may arrive as a JSON number or as a numeric string. Missing fields, empty strings, booleans, NaN, or infinities fail with invalid_input naming the field and are not billed. On success the body echoes the five inputs, returns present_value_cash_flows for the explicit window, terminal_value at the horizon, present_value_terminal, equity_value as the DCF total, intrinsic_value as equity_value divided by shares, and a formula string restating the identity. Pair the figure with your own margin of safety; this endpoint does not consume a market price.

Where an intrinsic value calculator earns its keep

Automation authors pin the rounded intrinsic_value field in notebooks and edge workers whenever a model changes g or r. Keep free cash flow and shares finite, keep the discount rate strictly above the growth rate, pin the rounded intrinsic_value in tests, and you get a reproducible DCF per-share value for widgets, classrooms, and production pipelines. Portfolio scripts can call the same module in a loop; the free browser path remains byte-for-byte identical to the API so a landing-page preview never lies about the figure that will be stored after a save.