This instrument allows you to build a DCF Model from scratch for any non-financial company in our database. It is not available on mobile, so we ask you to please access it using our Desktop interface.

Each step requires you to input an assumption about a company’s future.

Revenue Growth, Profit Margin, Operating Expenses and the growth of Shares Outstanding are percentage inputs that propagate 5 years into the future. The last step when building the model is assigning an EV/EBITDA multiple to the business, as well as estimating a Tax Rate and the Weighted Average Cost of Capital.

Finally, the instrument will output the complete DCF Model, a Price Target and an EPS Growth Rate. You can use these in conjunction with the Single Instrument Chart in order to gauge whether a stock is currently cheap or expensive given the assumptions.