Financial Calculators Now Available

Today I'm excited to roll out a new site feature: Financial Calculators!

It may not sound that exciting, but these calculators can really help in stock and portfolio analysis. There are 3 different ones:

Discounted Free Cash Flow (DFCF): A discounted free cash flow, or DFCF, calculation is the traditional way to determine a stock's fair value. Essentially, a company is worth the sum of its future free cash flows, discounted to the present day. This calculator lets you enter in some basic information on a company (sales and share count), along with your assumptions on its future growth, margins, dilution, etc. It will then give you a target "fair value" share price. You can also enter the assumptions from a stock page and make your own edits to get a target range of prices.

Compound Annual Growth Rate (CAGR): A compound annual growth rate, or CAGR, is a key way to measure growth. It is better than taking average growth rates, as wild year-to-year swings in growth rates can skew that number. This calculator is pretty simple. Just enter a start value, end value, and the number of years between them. The calculator will return you a CAGR percentage figure. This can be used for anything: revenue, profits, debt, your own net worth, etc.

Compound Interest: The final calculator is a compound interest application. Albert Einstein called compound interest the "eigth wonder of the world". Use this and you can see why! This is kind of a fun one, giving you an idea of your potential portfolio worth if you can sustain a particular rate of return over a period of time.

Hopefully you find them useful and/or entertaining. If there are any other calculators you might find useful, please let me know. Enjoy!