Learn / value a company

Value a company’s cash flows

A five-year sample FCFF forecast produces enterprise value. A discount rate is a stated assumption—not a market fact. No debt/cash bridge or share count is silently invented.

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Sample data

A five-year sample FCFF forecast produces enterprise value. A discount rate is a stated assumption—not a market fact. No debt/cash bridge or share count is silently invented.

Enterprise value14,939,964.5744USD · not equity value

Forecast present value4,226,680.0951USD

Terminal present value10,713,284.4792USD

Terminal share of value0.7171decimal fraction

Sensitivity to the annual discount rate

Five-year FCFF valuationEnterprise value · USD

Exact chart data

Series	Annual discount rate · decimal	Enterprise value · USD
Five-year FCFF valuation	0.07500000000000001	22550640.564338207
Five-year FCFF valuation	0.07750000000000001	21462841.345692933
Five-year FCFF valuation	0.08000000000000002	20474055.55239091
Five-year FCFF valuation	0.08250000000000002	19571366.975535847
Five-year FCFF valuation	0.085	18744012.12760844
Five-year FCFF valuation	0.08750000000000001	17982949.697863124
Five-year FCFF valuation	0.09000000000000001	17280529.364177857
Five-year FCFF valuation	0.09250000000000001	16630234.202276524
Five-year FCFF valuation	0.09500000000000001	16026478.292980412
Five-year FCFF valuation	0.0975	15464446.203826837
Five-year FCFF valuation	0.1	14939964.574368779
Five-year FCFF valuation	0.10250000000000001	14449398.555937432
Five-year FCFF valuation	0.10500000000000001	13989567.66895352
Five-year FCFF valuation	0.10750000000000001	13557676.95891355
Five-year FCFF valuation	0.11000000000000001	13151260.301323608
Five-year FCFF valuation	0.11250000000000002	12768133.425791131
Five-year FCFF valuation	0.11500000000000002	12406354.769438239
Five-year FCFF valuation	0.11750000000000002	12064192.67841369
Five-year FCFF valuation	0.12000000000000001	11740097.788116653
Five-year FCFF valuation	0.12250000000000001	11432679.652620006
Five-year FCFF valuation	0.125	11140686.879682977

Assumptions & conventions

{
  "contractVersion": 1,
  "modelVersion": 1,
  "valuationDate": "2026-01-01",
  "currency": "USD",
  "valuationBasis": "firm",
  "annualDiscountRate": 0.1,
  "discountRateSource": "user-supplied",
  "compounding": "annual",
  "dayCount": "ACT/365F",
  "terminalValueMethod": {
    "method": "perpetual-growth",
    "terminalCashFlow": 1262476.9600000004,
    "perpetualGrowthRate": 0.025
  },
  "terminalCashFlowConvention": "final-forecast-period-flow",
  "bridgeDecision": "no-bridge-supplied-equity-value-absent",
  "shareCountDecision": "no-shares-supplied-per-share-absent"
}

Diagnostics & warnings

{
  "projectedPeriodCount": 5,
  "terminalValueShareOfValue": 0.7170890148979001,
  "warnings": [],
  "exclusions": []
}

Full result · JSON

{
  "valuation": {
    "projectedCashFlows": [
      {
        "timeYears": 1,
        "cashFlowAmount": 1000000,
        "discountFactor": 0.9090909090909091,
        "presentValue": 909090.9090909091
      },
      {
        "timeYears": 2,
        "cashFlowAmount": 1060000,
        "discountFactor": 0.8264462809917354,
        "presentValue": 876033.0578512396
      },
      {
        "timeYears": 3,
        "cashFlowAmount": 1123600.0000000002,
        "discountFactor": 0.7513148009015775,
        "presentValue": 844177.3102930126
      },
      {
        "timeYears": 4,
        "cashFlowAmount": 1191016.0000000002,
        "discountFactor": 0.6830134553650704,
        "presentValue": 813479.9535550849
      },
      {
        "timeYears": 5,
        "cashFlowAmount": 1262476.9600000004,
        "discountFactor": 0.6209213230591549,
        "presentValue": 783898.8643349
      }
    ],
    "projectedCashFlowPresentValue": 4226680.095125146,
    "terminalValue": 17253851.78666667,
    "terminalValuePresentValue": 10713284.479243632,
    "assumptions": {
      "contractVersion": 1,
      "modelVersion": 1,
      "valuationDate": "2026-01-01",
      "currency": "USD",
      "valuationBasis": "firm",
      "annualDiscountRate": 0.1,
      "discountRateSource": "user-supplied",
      "compounding": "annual",
      "dayCount": "ACT/365F",
      "terminalValueMethod": {
        "method": "perpetual-growth",
        "terminalCashFlow": 1262476.9600000004,
        "perpetualGrowthRate": 0.025
      },
      "terminalCashFlowConvention": "final-forecast-period-flow",
      "bridgeDecision": "no-bridge-supplied-equity-value-absent",
      "shareCountDecision": "no-shares-supplied-per-share-absent"
    },
    "diagnostics": {
      "projectedPeriodCount": 5,
      "terminalValueShareOfValue": 0.7170890148979001,
      "warnings": [],
      "exclusions": []
    },
    "valuationBasis": "firm",
    "enterpriseValue": 14939964.574368779,
    "equityValueAbsentReason": "no enterpriseToEquityBridge was supplied — bridge fields are never silently zeroed, so equity value is absent",
    "valuePerShareAbsentReason": "dilutedSharesOutstanding was not supplied — a per-share value needs the share count"
  },
  "sensitivity": [
    {
      "x": 0.07500000000000001,
      "y": 22550640.564338207
    },
    {
      "x": 0.07750000000000001,
      "y": 21462841.345692933
    },
    {
      "x": 0.08000000000000002,
      "y": 20474055.55239091
    },
    {
      "x": 0.08250000000000002,
      "y": 19571366.975535847
    },
    {
      "x": 0.085,
      "y": 18744012.12760844
    },
    {
      "x": 0.08750000000000001,
      "y": 17982949.697863124
    },
    {
      "x": 0.09000000000000001,
      "y": 17280529.364177857
    },
    {
      "x": 0.09250000000000001,
      "y": 16630234.202276524
    },
    {
      "x": 0.09500000000000001,
      "y": 16026478.292980412
    },
    {
      "x": 0.0975,
      "y": 15464446.203826837
    },
    {
      "x": 0.1,
      "y": 14939964.574368779
    },
    {
      "x": 0.10250000000000001,
      "y": 14449398.555937432
    },
    {
      "x": 0.10500000000000001,
      "y": 13989567.66895352
    },
    {
      "x": 0.10750000000000001,
      "y": 13557676.95891355
    },
    {
      "x": 0.11000000000000001,
      "y": 13151260.301323608
    },
    {
      "x": 0.11250000000000002,
      "y": 12768133.425791131
    },
    {
      "x": 0.11500000000000002,
      "y": 12406354.769438239
    },
    {
      "x": 0.11750000000000002,
      "y": 12064192.67841369
    },
    {
      "x": 0.12000000000000001,
      "y": 11740097.788116653
    },
    {
      "x": 0.12250000000000001,
      "y": 11432679.652620006
    },
    {
      "x": 0.125,
      "y": 11140686.879682977
    }
  ]
}

Use it in your project

Returns a valuation report. This example prints three selected fields from the firm-basis report, in USD. The sensitivity chart is a separate set of repeated valuations, not a required conversion of the answer.

import { discountedCashFlow, type DiscountedCashFlowInput } from '@insiderfinance/totalfinance/valuation';

const input: DiscountedCashFlowInput = {
  "valuationBasis": "firm",
  "valuationDate": "2026-01-01",
  "currency": "USD",
  "projectedCashFlows": [
    {
      "timeYears": 1,
      "amount": 1000000
    },
    {
      "timeYears": 2,
      "amount": 1060000
    },
    {
      "timeYears": 3,
      "amount": 1123600.0000000002
    },
    {
      "timeYears": 4,
      "amount": 1191016.0000000002
    },
    {
      "timeYears": 5,
      "amount": 1262476.9600000004
    }
  ],
  "annualDiscountRate": 0.1,
  "compounding": "annual",
  "terminalValueMethod": {
    "method": "perpetual-growth",
    "terminalCashFlow": 1262476.9600000004,
    "perpetualGrowthRate": 0.025
  }
};
const valuation = discountedCashFlow(input);
if (valuation.valuationBasis !== 'firm') throw new Error('Expected firm basis.');
const result = {
  enterpriseValue: valuation.enterpriseValue,
  projectedCashFlowPresentValue: valuation.projectedCashFlowPresentValue,
  terminalValuePresentValue: valuation.terminalValuePresentValue,
};
console.log(result);

Output of this example

{
  "enterpriseValue": 14939964.574368779,
  "projectedCashFlowPresentValue": 4226680.095125146,
  "terminalValuePresentValue": 10713284.479243632
}

Reproduce this entire playground

This complete example reproduces every chart point and the full playground result. Sample generation and chart mapping are example setup, not required conversions of library outputs.

import { discountedCashFlow, type DiscountedCashFlowInput } from '@insiderfinance/totalfinance/valuation';

const input: DiscountedCashFlowInput = {
  "valuationBasis": "firm",
  "valuationDate": "2026-01-01",
  "currency": "USD",
  "projectedCashFlows": [
    {
      "timeYears": 1,
      "amount": 1000000
    },
    {
      "timeYears": 2,
      "amount": 1060000
    },
    {
      "timeYears": 3,
      "amount": 1123600.0000000002
    },
    {
      "timeYears": 4,
      "amount": 1191016.0000000002
    },
    {
      "timeYears": 5,
      "amount": 1262476.9600000004
    }
  ],
  "annualDiscountRate": 0.1,
  "compounding": "annual",
  "terminalValueMethod": {
    "method": "perpetual-growth",
    "terminalCashFlow": 1262476.9600000004,
    "perpetualGrowthRate": 0.025
  }
};
const rates = Array.from({ length: 21 }, (_, index) => 0.07500000000000001 + index * 0.0025);
const sensitivity = rates.map(rate => {
  const row = discountedCashFlow({ ...input, annualDiscountRate: rate });
  if (row.valuationBasis !== 'firm') throw new Error('Expected firm basis.');
  return { x: rate, y: row.enterpriseValue };
});
// Firm-basis cash flows produce enterprise value.
const result = { valuation: discountedCashFlow(input), sensitivity };
console.log(result);

Both examples use the last successfully calculated inputs. The first call may show fewer scenarios or selected report fields, as labeled above. Displayed metrics are rounded; copied calculations retain exact values.

Continue with the full API reference or the API levels guide.