Discounted Cash Flow Calculator

The Warren Buffett fair value method — find the intrinsic value of any stock based on its earnings and expected growth.

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Enter your assumptions

Fill in the fields below then click Calculate.

How to use this calculator

Enter the stock’s earnings per share (EPS) for the last 12 months — find this on any stock quote page
Enter the expected growth rate for the near-term period and how many years that growth lasts
Enter the long-term growth rate the earnings level off to after the initial period
Enter the discount rate — the return you could get from a benchmark investment like the S&P 500 (default: 11%)
Click Calculate to see the stock’s fair value

Earnings

Earnings Per Share (last 12 months)

Find this on any stock quote page under EPS (TTM)

Growth Assumptions

Near-term earnings growth

Grow at % per year for years

Your estimate of how fast earnings will grow in the near term

Long-term growth rate (after the above period)

The slower, sustainable rate earnings level off to — use 0 to be conservative

Discount Rate

Benchmark return rate (S&P 500, DOW, Nasdaq, Bonds…)

The return you’d expect from an alternative investment — 11% is the S&P 500 historical average

Fair value result

Results appear here after you click Calculate.

Enter your assumptions and click Calculate to find the stock’s intrinsic fair value.

Estimated Fair Value Per Share

$—

—

Your assumptions

EPS (last 12 months)—

Near-term growth rate—

Growth period—

Long-term growth rate—

Discount rate—

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Disclaimer: This calculator is provided for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. The discounted cash flow method produces an estimate of intrinsic value based entirely on the assumptions you enter — small changes in growth rate or discount rate can produce significantly different results. This tool does not account for debt, balance sheet quality, competitive position, or other factors relevant to stock valuation. Always do your own research or consult a licensed financial advisor before making investment decisions. IncomeTrader.com is not responsible for any trading or investment decisions made based on this tool.