A DCF (Discounted Cash Flow) Calculator helps investors estimate the intrinsic value of a company or investment.
It evaluates how much an investment is worth today based on expected future cash flows, adjusted for the time value of money.
Using DCF analysis, you can determine whether a stock is undervalued or overvalued compared to its current market price.
How Does a DCF Calculator Work?
The DCF method projects a company’s future free cash flows and discounts them to the present value using an appropriate
discount rate. The total of these discounted values gives the Intrinsic Value — a fair estimate of
what the investment is truly worth today.
Understanding Margin of Safety
The Margin of Safety measures how much the current market price is below the intrinsic value.
A higher margin of safety indicates greater protection against market volatility or estimation errors.
Margin of Safety (%) =
(Intrinsic Value − Current Price)
Intrinsic Value
× 100
Where:
Intrinsic Value = The estimated fair value of the investment
Current Price = The current market price of the investment
Use the Rallys Equities DCF Calculator to calculate intrinsic value, margin of safety, and make smarter investment decisions.
