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Market cap calculator

What's the Potential Market Cap of My Company?

This discounted cash flow calculator (or DCF calculator for short) provides you with a simple method of company valuation. With just a few clicks, you will be able to estimate how much your company is worth, and what an initial market cap on a stock exchange listing may be.

If you’re not sure how to calculate the discounted cash flow or what it is, make sure to scroll down for a detailed explanation, including the DCF formula.

If your early-stage startup doesn’t bring any profit yet, the DCF calculator won’t work!

Predictable growth

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Terminal growth

Company value

What is DCF?

The discounted cash flow (DCF) is a method of company valuation, usually used for late-stage startups. It is mostly applied by investors to check whether their investment will bring substantial profit.

The principle of the discounted cash flow is very similar to the Net Present Value (NPV). The calculation consists of a few steps:

  • First of all, you have to project cash flows for the next couple of years. It is usually done by estimating the growth rate of the company – for example, you assume that each year will bring a 15% increase in the company value.
  • In the second step, the cash flow estimates are discounted using an annual discount rate. This calculation reflects the change in the value of your money. Consider this example: $100 today is not an equivalent of $100 in three years from now – after all, you could put it in a savings account, where its value would steadily increase. The discount rate is usually assumed to be equal to WACC (Weighted Average Cost of Capital).
  • In the next step, you need to estimate the terminal value of your company. Usually, you won’t assume that your startup grows at a steady rate for infinity. Instead, you have to assume a lower growth rate, called the terminal growth rate, to show that growth is slowing down. Basing on that number, you will estimate the increase in your company’s value from the end of the growth phase to the end of the startup’s existence.
  • Finally, the result (called the total intrinsic value) has to be compared with the amount of money you want to invest. If the intrinsic value is higher, it means that the returns from the investment exceed the costs. If, on the other hand, the intrinsic value is lower, the investment will (most likely) never pay off.

Next Steps

If your company is planning to go public and raise funds on the capital markets, we look forward to hearing from you.

The easiest way to get started is to request a free evaluation. By providing minimal information about your company and capital needs, we will be able to provide you with a quick assessment by email. In most cases we can tell you if your business is ready to go public, or not yet.

We’ll also let you know if we think that Swordblade & Co are a good fit for your flotation plans, and anything else that we may think can help you.

Alternatively, if you are ready to talk in depth about floating your company, we recommend you arrange a paid consultation with one of our partners. It can usually be scheduled within a few days and is the fastest way to get detailed advice.