Marketgenius
Marketgenius

Reverse DCF Calculator

Use our free reverse discounted cash flow (DCF) calculator to find the implied growth rate priced into a stock. Search, adjust, and compare market expectations. Part of our free investment calculators.

Find your stock

$
$
$
%
%
y

Implied FCF growth (10y)

0% per year

PV of cash flows (1-10y)

$0.0 (0%)

PV of terminal value (11y+)

$0.0 (0%)

Invalid or missing inputs

Adjust your inputs to reveal your results.

A reverse DCF (discounted cash flow) works backwards from the current stock price to find the growth rate the market expects. Instead of estimating what a stock should be worth, it reveals what assumptions are already priced in.

If the implied FCF growth rate looks too high compared to historical performance, the stock may be overpriced. If it looks achievable, that tells you the market is not asking for a miracle to justify the price.

EV = ΣPV + TV / (1 + r)ⁿ → solve for g

  • EV = enterprise value (equity value + net debt)
  • PV = FCF × (1 + g)ⁱ / (1 + r)ⁱ (present value of each year's cash flow)
  • TV = FCFₙ × (1 + g∞) / (r − g∞) (terminal value after the projection period)
  • g = implied FCF growth rate (what the market is pricing in)
  • r = discount rate (WACC)
  • g∞ = terminal growth rate (perpetual)
  • n = projection period in years

Find your stock

$
$
$
%
%
y

Implied FCF growth (10y)

0% per year

PV of cash flows (1-10y)

$0.0 (0%)

PV of terminal value (11y+)

$0.0 (0%)

Invalid or missing inputs

Adjust your inputs to reveal your results.

A reverse DCF (discounted cash flow) works backwards from the current stock price to find the growth rate the market expects. Instead of estimating what a stock should be worth, it reveals what assumptions are already priced in.

If the implied FCF growth rate looks too high compared to historical performance, the stock may be overpriced. If it looks achievable, that tells you the price reflects realistic expectations.

EV = ΣPV + TV / (1 + r)ⁿ → solve for g

  • EV = enterprise value (equity value + net debt)
  • PV = FCF × (1 + g)ⁱ / (1 + r)ⁱ (present value of each year's cash flow)
  • TV = FCFₙ × (1 + g∞) / (r − g∞) (terminal value after the projection period)
  • g = implied FCF growth rate (what the market is pricing in)
  • r = discount rate (WACC)
  • g∞ = terminal growth rate (perpetual)
  • n = projection period in years

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DCF Calculator

Estimate the intrinsic value of any stock using a discounted cash flow model. Set your growth assumptions and see the fair value per share.

This is an educational tool, not financial advice. Always conduct thorough research before investing.