WMT DCF Valuation
Calculate the intrinsic value of Walmart Inc (WMT) using a two-stage discounted cash flow model. Adjust the growth rate, discount rate, and terminal growth assumptions to see how the fair value changes across different scenarios.
$24.51
-80.7%
Fair Value
$24.51
Price
$127.26
Margin
-80.7%
Key Fundamentals
Value Breakdown
Growth Stage
$134.82B
69% · 0.2% rate
Terminal Stage
$60.54B
31% · 3.0% rate
Enterprise Value
$195.35B
100%
Projected EPS/Share
| Disc \ Growth | -2% | -1% | 0% | 1% | 2% |
|---|---|---|---|---|---|
| 8% | $25 | $27 | $28 | $30 | $33 |
| 9% | $23 | $25 | $26 | $28 | $30 |
| 10% | $22 | $23 | $25 | $26 | $28 |
| 11% | $20 | $21 | $23 | $24 | $26 |
| 12% | $19 | $20 | $21 | $23 | $24 |
Green = above current price · Red = below current price · Highlighted = your assumptions
Model Summary
About the DCF Calculator
A Discounted Cash Flow (DCF) calculator estimates a company's intrinsic value by projecting its future cash flows and discounting them back to present value. The core idea: a dollar earned in the future is worth less than a dollar today, so future earnings must be adjusted for the time value of money.
Choose from EPS-based (for earnings-driven companies), FCF-based (for capital-light businesses), or dividend-based (for income stocks) models. The sensitivity table stress-tests your assumptions by showing how intrinsic value changes across a range of growth and discount rates.
The DCF Calculator projects 10 years of future cash flows using the growth rate you specify, then discounts them to present value using the weighted average cost of capital (WACC). A terminal value cap captures cash flows beyond the projection period, assuming a perpetual growth rate of 2–3%. The sum of all discounted cash flows divided by shares outstanding gives the intrinsic value per share.
The sensitivity table shows how the intrinsic value changes when you adjust the growth rate and discount rate by ±2 percentage points in each direction. This helps you stress-test your assumptions and identify the range of reasonable valuations. Use the EPS-based model for earnings-driven companies, FCF-based for capital-light businesses, or the dividend model for income stocks.
How It Works
Today's FCF
$7.10/share
Project 10 Years
8% annual growth
Discount to Present
10% discount rate
= Fair Value
$XXX/share
The tool projects 10 years of future cash flows using your growth rate, discounts them to present value using WACC, and adds a terminal value assuming 2–3% perpetual growth. The sum divided by shares outstanding gives intrinsic value per share.
Valuing Apple Using a Real World DCF Example
ExamplePicture yourself looking to buy a single share of Apple (AAPL), priced at 230 dollars right now. What runs through a value-focused investor's mind isn't excitement - it's doubt. Could those coming years really deliver enough cash to make this cost reasonable? That number on the screen needs backing up, somehow.
A number-crunching method sorts out the puzzle with math. This is what happens when actual figures get plugged in:
Picture this: Apple pulled in around $110 billion in free cash flow last year. That breaks down to nearly $7.10 per share. Think of that number as real money left over, once all bills are settled. It covers costs to run the company plus any growth moves. This figure becomes your foundation. What counts here is cold, hard cash - nothing owed, just earned.
Second comes pushing the numbers ahead. Picture Apple boosting its free cash flow by 8 percent each year over ten years - on the low side, given how tightly their products work together - and suddenly these future earnings take shape:
| Year | Projected FCF/Share |
|---|---|
| Year 1 | $7.67 |
| Year 3 | $8.95 |
| Year 5 | $10.43 |
| Year 10 | $15.33 |
One future dollar buys less than one now. By year ten, each share could bring in fifteen thirty-three. That amount today? Roughly five ninety-one - cut down by time's weight. Ten percent fades its value, like distance blurs a shape. Year five shows ten forty-three, slower climbing. Three years out gives eight ninety-five, not fast but steady. Seven sixty-seven starts it all in the first stretch. Waiting lowers worth, no matter how clean the math. Money later needs shrinking to match money now. A firm hand on timing keeps guesses real. Each step forward thins what you hold in present terms.
Tally up each year's adjusted cash amounts, then tag on an ending estimate since the business keeps going past Year 10. Slide that total across the number of shares out there. What lands is what one piece should be valued at inside - your honest take on its real price.
A figure of 195 from your DCF while Apple sits at 230 means price exceeds your estimate - perhaps hold off until a dip. When the model shows 280 instead, the share could be priced below what it's worth.
Here is what matters most. The model won't predict the future. Instead it reveals what beliefs lie behind today's stock price. Tweak just one number - lift growth from 8% to 12% - then see how much higher the calculated value climbs. That gap? You're seeing market sentiment laid bare. What looked like a forecast turns out to be an assumption in disguise.
Frequently asked questions
A Discounted Cash Flow (DCF) calculator estimates a company's intrinsic value by projecting its future cash flows and discounting them back to present value. The core idea: a dollar earned in the future is worth less than a dollar today, so future earnings must be adjusted for the time value of money.
Try it now — adjust the inputs above to run your own DCF valuation for WMT.
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