Do I need to install anything?

No. It runs in any modern browser, free, with no account required.

For Students · DCF Valuation

DCF Valuation for a hedge position

Built for students learning it for a class or exam. See the concept move instead of memorizing formulas — and check your homework intuition. Simulate a hedge position live below — adjust the inputs and watch it respond, right in your browser.

DCF ValuationLive

what future cash is worth today

Controls

Presets

Year-1 cash flow ($)

Growth rate (%)

Discount rate (%)

Terminal growth (%)

Forecast years

Discounted cash flow values a business as the present worth of all its future cash. Distant cash is worth less because of the discount rate, and a terminal value captures everything beyond the forecast horizon. Educational tool, not financial advice.

▶ Run in Python

Data Inspector

PV of forecast$905

Terminal value (PV)$1225

Total valuation$2130

Governing equation

V = t = 1 \sum 10 \frac{F C F _{t}}{( 1 + r ) ^{t}} + \frac{T V}{( 1 + r ) ^{10}}, r = 0.10, T V = $1225

Reading this result: A 2.0-point gap between discount and growth shrinks each later year of present value; the terminal still accounts for 57% of the total.

Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.

or unlock everything with Pro →

Also for:Researchers Educators Engineers Hobbyists & Makers K-12 Students First Responders General version →

More with DCF Valuation

DCF Valuation for a stock option DCF Valuation for a retirement fund DCF Valuation for a mortgage DCF Valuation for a bond ladder DCF Valuation for a crypto portfolio DCF Valuation for an index fund DCF Valuation for a savings plan DCF Valuation for a startup valuation

Frequently asked questions

Is this good for students?: Yes — this version of "DCF Valuation for a hedge position" is framed for students learning it for a class or exam. See the concept move instead of memorizing formulas — and check your homework intuition.
Do I need to install anything?: No. It runs in any modern browser, free, with no account required.