Valuation models > Equity valuation > Fundamental (5yr)
Use this calculator to estimate the intrinsic value of shares.
Value the equity in the firm's operating assets, then adjust to get per share value.
This model assumes net income after tax (NIAT) will grow at the fundamental rate for three years before declining to the stable growth rate.
The fundamental growth rate is defined as the Reinvestment rate x ROE.

Enter inputs below and click the Calculate button.
Make sure your units are consistent (millions, billions, etc.)

Inputs Value
Invested equity, operating assets
Cash, equivalents and short-term investments
Investments and other non-operating assets
Non-controllling interests
Employee options, total value
Number of shares outstanding

Assumptions Value
Return on equity (ROE), %
Reinvestment rate, %
Cost of equity (COE), %
Stable growth rate, %
Stable ROE, %

Calculations Value
Net income after tax (NIAT)
Free cash flow to equity (FCFE)
Payout ratio, equity, %
Fundamental growth rate of NIAT, %
Stable ROE, %
Stable payout ratio, equity, %

Year Growth NIAT Payout ratio FCFE Discount factor Present value
TTM - - -
Stable -

Value of operating assets
(+) Cash and equivalents
(+) Investments
(-) Employee options
(-) Non-controlling interests
(=) Value of shareholders' equity
(รท) Number of shares
(=) Value per share