What you can calculate in this section
Discount future cash flows, bridge enterprise and equity value, and compare return requirements. Start with the result you need, then confirm that every input comes from the same period and uses the definition shown on the selected page.
A calculator returns a mathematical result. The worked example and limitations explain whether that result belongs in the decision you are making.
10 guides and calculators
Each page below gives the direct definition first, then the equation or method, inputs, sample calculation, common mistakes and related formulas.
Discounted Cash Flow
discounted cash flow explained with the formula, inputs, example and limitations.
Open Discounted Cash Flow →Calculator Present Value
calculator present value explained with the formula, inputs, example and limitations.
Open Calculator Present Value →Future Value Formula
future value formula explained with the formula, inputs, example and limitations.
Open Future Value Formula →Cap Rate Formula
cap rate formula explained with the formula, inputs, example and limitations.
Open Cap Rate Formula →Annuity Formula
annuity formula explained with the formula, inputs, example and limitations.
Open Annuity Formula →Cost of Equity Formula
cost of equity formula explained with the formula, inputs, example and limitations.
Open Cost of Equity Formula →Payback Period Formula
payback period formula explained with the formula, inputs, example and limitations.
Open Payback Period Formula →Present Value of Annuity Formula
present value of annuity formula explained with the formula, inputs, example and limitations.
Open Present Value of Annuity Formula →Cost of Capital
cost of capital explained with the formula, inputs, example and limitations.
Open Cost of Capital →Equity Value Formula
equity value formula explained with the formula, inputs, example and limitations.
Open Equity Value Formula →How to choose the right formula
- Name the decision.
Decide whether you need a value, rate, margin, return, balance or comparison. - Match the timing.
Use annual figures with annual figures and distinguish a point-in-time balance from a period flow. - Check the definition.
Confirm what each numerator, denominator, cash flow or cost includes. - Run an example.
Reproduce the sample result before entering your own figures. - Test another case.
Change one assumption at a time and record what drives the answer.
Frequently asked questions
What is valuation formulas?
Discount future cash flows, bridge enterprise and equity value, and compare return requirements.
How should I use valuation formulas?
Use the formula only after matching every input to the same period, unit and definition. Then compare the result with a worked example and the decision you are trying to make.
What is the most common mistake with valuation formulas?
The most common mistake is choosing a familiar formula before defining the decision, period, units and available inputs.
Can I calculate valuation formulas in a spreadsheet?
Yes. Reproduce the displayed equation with separate cells for each input, keep percentages as decimals, and test the spreadsheet against the worked example before replacing the sample figures.
Sources and methodology
The section’s financial context is checked against Financial definitions. Each leaf page names the source used for its specific formula or reporting relationship.