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The Reverse DCF Calculator
Solve for implied growth
Why solve backward instead of forward
A forward DCF hides its own assumption
Pick a growth rate, get a price target — but the growth rate is almost always the whole ballgame, and it's easy to reverse-engineer a target you already believed in by quietly tuning the input that matters most.
The market's price is the one number that isn't a guess
Taking the real, current, market-set price as fixed and solving for growth flips the question from "what do I think will happen" to "what does the market already need to happen for this price to make sense" — a genuinely different and often more useful question.
The output is a check, not a target
An implied growth rate isn't a prediction. It's a number to hold up against your own view of the business — if the market needs 35% sustained growth and you don't believe the company can deliver it, that's the finding.
Why this belongs next to the other risk & valuation tools
The Sharpe & Sortino Calculator and Monte Carlo Path Simulator both work from a stock's real price history — what it actually did. This tool works from the opposite direction: what does the current price say the market believes will happen next. Between the two, you get both where a stock has been and what's baked into where it is now.
Methodology & limitations
Model. A standard two-stage DCF: free cash flow per share grows at a constant annual rate g for the projection period, discounted at the entered WACC, plus a Gordon-growth terminal value (final-year FCF × (1 + terminal growth) ÷ (WACC − terminal growth)) discounted back to present. The tool solves for the single value of g that makes this model's present value equal the entered current price, via bisection over a −95% to +300% search range.
Price prefill is real; fundamentals are yours. When you prefill from a real holding, the price used is that position's real last close, from the same dataset behind the Volatility & Correlation Engine. Free cash flow per share, the discount rate, and the terminal growth rate are not pulled from any live data source — this site does not have a reliable fundamentals feed, so rather than fabricate a plausible-looking number, this tool asks you to supply your own from a source you trust (a 10-K, a data provider, your own model).
Known limitation: negative or near-zero FCF. A constant-growth-rate model breaks down at a negative starting FCF per share — there's no meaningful growth rate that "grows" a loss into the specific positive value needed. The tool declines to produce a number in that case rather than return something misleading.
Not investment advice. An implied growth rate is not a price target, a forecast, or a recommendation to buy, sell, or avoid any security.