# A free DCF model, no account needed

*https://sifter.finance/dcf*

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)](https://sifter.finance/dcf/MSFT), [Nvidia (NVDA)](https://sifter.finance/dcf/NVDA), [AMD (AMD)](https://sifter.finance/dcf/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](https://sifter.finance/textbook/ch16-dcf.md).

## Any stock

With a free Sifter account the same model runs on any stock, filled in from the company's own statements. Students sign up with a school email at https://sifter.finance/signup.

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.