A free DCF model, no account needed

Sifter's discounted cash flow model is open to anyone on three sample companies. It is the same model fund members use on any stock: you set the assumptions and it shows what the company is worth under them.

Open it on Microsoft (MSFT), Nvidia (NVDA), AMD (AMD).

What you can change

• Revenue growth for years 1 to 3 and for years 4 to 5.
• Operating margin, held for all five years or set year by year.
• The tax rate.
• The discount rate (WACC), built from the risk-free rate, the equity risk premium, the cost of debt and the debt weight.
• The terminal value, by a perpetual growth rate or by an exit EV/EBITDA multiple in year 5.

What it shows

• A fair value per share, beside the current price.
• The steps from firm value to equity value: the present value of five years of free cash flow, the terminal value, less net debt.
• A sensitivity grid that shows fair value as the discount rate and terminal growth change.
• A reverse DCF: the growth the current price already assumes.

How the model works

A DCF values a company as the cash it will produce, counted in today's dollars. The model projects five years of free cash flow, adds a terminal value for every year after that, and discounts both back at the cost of capital. The textbook works through it by hand in Chapter 16: DCF: cash flows and assumptions.

Any stock

With a free Sifter account the same model runs on any stock, filled in from the company's own statements, next to comps, filings and the rest of the research pages. Students sign up with a school email.

The sample companies use approximate annual figures. They are for learning how the model behaves, not for a decision about those stocks. Nothing here is investment advice.

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