Calculators
Reverse DCF Calculator
The growth a stock's price already assumes.
$M
$M
$M
%
%
Implied growth per year
n/a
Free cash flow in year 10
n/a
Market cap
$0
Free cash flow yield
n/a
Needs positive free cash flow.
How it works
A DCF turns a growth rate into a value. A reverse DCF starts from the market cap and solves for the free cash flow growth that would justify it.
Market cap = Present value of free cash flow + Terminal value + Net cash
Free cash flow grows at the implied rate for the growth years, then at the terminal rate forever, discounted at the discount rate. Higher implied growth means the price expects more.