# The calculator

How is the second part of the intrinsic value calculator structured?

How is the second part of the intrinsic value calculator structured?

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## Comments

I'm not sure of the exact formula that Preston and Stig use for the DCF calculator but it is most likely the same as this;

DCF = CF1/(1+r)1 + CF2/(1+r)2 + CF3/(1+r)3 ...+ CFn/(1+r)n

CF1 = cash flow in period 1

CF2 = cash flow in period 2

CF3 = cash flow in period 3

CFn = cash flow in period n

r = discount rate (also referred to as the required rate of return)

I hope this helps and if you have any more questions please don't hesitate to ask.

Regards,

Anaximander