§ Tool · Valuation calculator
Reverse DCF calculator
The one model in the suite that doesn't emit a fair value. It takes the current price as given and solves the inverse: the growth rate the market is already pricing in. The output is a burden of proof, not a buy signal.
§ What this is warning you about first
Reverse DCF is a market-expectations test, not a buy signal. It will never tell you a stock is worth $X — it tells you the market is betting on Y% growth for the next decade. The point is to decide whether that implied growth path is plausible.
Implied growth
Model · reverse_dcf
Current price
Primary input
fairValue = null
No range — by design
cross_check
Role · not an anchor
10y · 5y
EPS · pre-profit horizon
§ Start with a preset
Two EPS modes and one pre-profit mode — adjust anything after.
LensBisection-solve the EPS growth the current price implies, vs analyst consensus./en/tools/reverse-dcf-calculator
§ What the market is pricing · Mature compounder
Implied EPS growth — the burden of proof
implied_growth_rate · 10-year horizon
8.76%
The market price implies the company's earnings compound at 8.76% per year for 10 years. Do you believe that?
Anchorttm_sbc_adjusted_eps
EPS used$9.00
Price$240.00
Ke · terminal g9.0% · 3.0%
fairValuenull
Plausibility bracket · −10% → +50%bisection · 20 iters · tol 1e-6
0%
analyst 8.0%
implied 8.8%
−10%+20%+50%
methodology_version = valuation-calculators.v1model_id = reverse_dcf · role = cross_check
§ vs consensus
Implied growth against the analyst consensus
+0.8pp
growth_gap_pp = (implied − analyst) × 100
In line with expectations
Implied growth sits within ~1pp of consensus — the market and analysts broadly agree on the path. Edge, if any, comes from a differentiated view on durability rather than the headline rate.
implied 8.8% vs analyst 8.0%
§ Audit fields · reverse_eps
Every input the solve consumed
eps$9.50
sbc_adjusted_eps$9.00
anchor usedttm_sbc_adjusted_eps
price$240.00
ke_moderate9.00%
terminal_growth3.00%
projection_years10
implied_growth_rate0.0876
analyst_growth_rate0.0800
growth_gap_pp+0.76
§ Reliabilityscore 85/100 · standard base
Analyst consensus supplied — reliability held at base 85% (no fair-value emitted, so there is no terminal-value penalty).
§ Formula trace
Every step, derived
- mode = standard_eps_reverse_dcf · epsAnchor = ttm_sbc_adjusted_eps ($9.00)
- price = $240.00 · ke = 9.00% · terminalGrowth = 3.00% · years = 10
- bracket [-10%, 50%] → dcfPrice(low) = $59.11, dcfPrice(high) = $4532.48
- bisection converged in 20 iters → impliedGrowth = 8.76%
- growthGapPp = (impliedGrowth − analyst 8.0%) × 100 = +0.76pp
§ Calculator contract
One stable kernel contract — same as the reports
Reference the model by its stable id reverse_dcf, not the display label. The dedicated page, the all-model workbook, and the report pipeline hit the same endpoint and reconcile to the same implied growth.
| Slug | /en/tools/reverse-dcf-calculator |
| Kernel model id | reverse_dcf · role cross_check |
| Valuation lens | Inverse DCF — solve the growth the market price implies (no fair value) |
| Primary input | Current price + SBC-adjusted EPS + Ke (standard) · EV + revenue + terminal multiple (pre-profit) |
| Output | status (computed / excluded / failed) + fairValue: null always + implied_growth_rate + growth_gap_pp |
| Methodology | valuation-calculators.v1 |
API contract note:
fairValue is always null for this model. Consumers that expect a fair-value range from every run must explicitly handle the null case — read result.status and implied_growth_rate instead.§ Notes
This surface is statelessand runs entirely in your browser — nothing you type is saved or sent anywhere. The same kernel powers the per-stock reports, so the implied growth here reconciles exactly with the report's reverse_dcfoutput for the same inputs — and is shown there as a "market is pricing X" callout next to the composite fair value, never blended into it. For the forward inverse, run the discounted earnings model with growth set to the implied rate — you'll land approximately back on the current price.
All-model workbook →Discounted earnings (forward)Read methodologymethodology_version = valuation-calculators.v1
§ FAQ
Five things worth knowing
Q01Why does this calculator emit no fair value?+
By design — and it is load-bearing. Every other model in the suite returns a fair-value range; the reverse DCF returns fairValue: null and an implied growth rate instead. The synthesis layer in the per-stock report reads that null and deliberately does NOT blend this model into the composite fair value. It lives alongside the intrinsic models as a "what is the market actually pricing?" cross-check, surfaced as a market-expectations callout next to the composite, never inside it.
Q02What does the FAILED status mean here — is it an error?+
No. The bisection runs inside a deliberate [-10%, +50%] plausibility bracket. If even +50% annual EPS growth for ten years cannot discount up to the current price, the market is pricing growth above 50%/yr — structurally unsustainable. If even a −10% annual decline still discounts above the price, the market is pricing severe distress. In either case the kernel returns FAILED with no_root_in_bracket rather than printing a meaningless number outside the bracket. The failure is more informative than a forced figure: the market price is not on the same continuum as a normal DCF, so reach for a distressed or speculative lens instead.
Q03How do you reverse-DCF a pre-profit company with no usable EPS?+
You can't on EPS, so the pre-profit archetype switches to a reverse EV/revenue diagnostic. It asks a different question in revenue space: what revenue CAGR would justify today's enterprise value at a mature terminal EV/revenue multiple (default 8×, clamped to [1, 30]) over a 5-year horizon? It solves required_terminal_revenue = EV × (1 + dr)^5 / multiple, then backs out the implied CAGR. The output is implied_revenue_cagr with diagnostic_type reverse_ev_revenue, distinct from the standard implied_growth_rate.
Q04Implied growth above or below analyst consensus — what is the read?+
That gap (growth_gap_pp, in percentage points) is the actionable output. If the implied growth is below consensus, the stock is cheap relative to expectations — the market is asking for less than analysts forecast. If it is above consensus, the stock is expensive relative to expectations — the market is betting on more than analysts do. Either the market is wrong or the analysts are; knowing which way the gap points, and how wide, is the burden of proof your thesis has to clear.
Q05What is the exact relationship to the forward DCF?+
Exact inverse. If you run the Discounted Earnings Calculator with growth set to the implied rate and the same EPS, Ke, and terminal growth, you get a fair value approximately equal to the current market price. That is the sanity check: the reverse DCF and the forward DCF reconcile on the same kernel. A 1pp change in Ke can swing implied growth by 1.5–2pp, so it inherits the same Ke and terminal-growth sensitivity as the forward models.