What is Discounted Cash Flow?
For DCF, see the detailed explanation on pages 330-337 of my book, “The Rules of Super Growth Stocks Investing“, and a step-by-step calculus for a practical example.
Features of this calculator
This calculator is used as a calculation template for user to adjust various parameters of the discounted cash flow model according to their own needs and the different company to be calculated, and finally calculate the reasonable intrinsic value of the company.
Please be noted:
- The default value of each field shown on the screen is based on Apple’s data at the end of the second quarter of 2022.
- Clicking on the words “Annual Free Cash Flow” on the screen will open Apple’s important statistics on the Yahoo Finance website, where you can find Apple’s annual free cash flow figures. You only need to change the U.S. stock code of the company on the website to find the statistics of the corresponding company.
- Clicking the words “annualized growth rate of cash flow in the next ten years” on the screen will open the important statistics of Apple on the Yahoo Finance website. You can find Apple’s revenue growth rate in the next few years. This calculates the annualized growth rate of cash flow. You only need to change the U.S. stock code of the company on the website to find the statistics of the corresponding company.
- For the discount rate figures, please refer to the detailed description on pages 330-337 of the book “Super Growth Stock Investing Rules”.
- Clicking on the words “average GDP over the past ten years” on the screen will allow you to query the average GDP and compound growth rate statistics of the United States in the past.
- Clicking on the word “Number of outstanding shares” on the screen will open the important statistics of Apple on the Yahoo Finance website, where you can find the number of outstanding shares of Apple. You only need to change the U.S. stock code of the company on the website to find the statistics of the corresponding company.
How to use this calculator?
Users simply click on this link to connect to the Querier to Annualized rate of return for Taiwan Stock Exchange and see the following screen:
Users only need to input the following fields on the screen:
- Annual Free Cash Flow
- Annualized growth rate of cash flow in the next ten years
- Discount Rate
- Average GDP over the past ten years
- Number of shares outstanding
The default values for the above fields will be based on Apple’s data at the end of the second quarter of 2022. You can change the value of each field of the corresponding company according to the company you want to calculate.
After the input is complete, click the “Intrinsic Value per Share” button on the screen, and you can see the calculation result of the intrinsic value per share in the “Calculation Results” area below.
Two practical examples
In order to let investors understand how to use my free online DCF tool program, you can refer to my following two famous practical examples for step-by-step explanation:
- “What’s TSMC DCF intrinsic value?How to calculate it quickly with a free tool?“: Apply my free online DCF tool program to TSMC and explain it step by step.
- Pages 330 to 337 of my book For DCF, see the detailed explanation on pages 330-337 of my book, “The Rules of Super Growth Stocks Investing“, it use Apple as an example to provide very detailed step-by-step instructions.
Table for US stock investment toolset
Special reminder
For all major market index annualized return query tools listed in the table; including Taiwan Stock Index, Dow Jones Index, S&P 500 Index, Nasdaq Index, Philadelphia Semiconductor Index, not only annualized return query , you can also query the index return rate in any year──just enter the year you want to query in both the start and end fields.
The following is a list of must-have US stock investment free tools developed by Andy Lin:
For the detail, please see “Free online US stock investment toolset".
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