Reverse DCF Calculator
Instead of computing what a company is worth at a given growth rate, reverse DCF asks: given the current market price, what growth rate is already priced in? Compare this to historical growth to judge whether expectations are realistic.
Market & company inputs
Current market cap in crores (e.g., 500000 = ₹5 lakh crore)
Most recent year's FCF in crores
Optional
Optional
DCF assumptions
Implied growth rate
Implied growth > 30%
The market cap implies a growth rate above 30% — beyond what this DCF model can estimate reliably. The stock may be priced for exceptional growth, or valued on factors beyond free cash flows (e.g. optionality, platform value, asset base).
Reverse DCF works backwards: instead of asking "what is this worth at X% growth?", it asks "what growth rate does the current price already assume?". Binary search finds the growth rate (0–30%) that makes the DCF equity value match the given market cap. Uses the same model as the forward DCF with no margin improvement assumption.
Understock runs reverse DCF for every listed company with its real financial data.
The implied growth rate is a mathematical output of the DCF model, not a forecast. It is not investment advice.