Reverse DCF Studio
A DCF asks what a business is worth. A reverse DCF asks the harder question: what does the market already believe? Set the discount rate and the fade, and the engine solves for the growth rate hidden inside today’s price.
at a 11.50% discount rate
Your 10.0% assumption values the equity at
₹1,655 per share
versus ₹1,480 in the market — +11.8%
Market cap ₹6,14,200 · implied EV ₹5,82,200 (₹ crore)
How this number is derived — step by step
Cash flow schedule — your 10.0% case
| Year | Growth | FCFF | Discount factor | Present value |
|---|---|---|---|---|
| 1 | 10.0% | 29,150 | 0.8969 | 26,143 |
| 2 | 10.0% | 32,065 | 0.8044 | 25,792 |
| 3 | 10.0% | 35,272 | 0.7214 | 25,445 |
| 4 | 10.0% | 38,799 | 0.6470 | 25,103 |
| 5 | 10.0% | 42,679 | 0.5803 | 24,765 |
| 6 | 10.0% | 46,946 | 0.5204 | 24,432 |
| 7 | 10.0% | 51,641 | 0.4667 | 24,103 |
| 8 | 10.0% | 56,805 | 0.4186 | 23,779 |
| 9 | 10.0% | 62,486 | 0.3754 | 23,459 |
| 10 | 10.0% | 68,734 | 0.3367 | 23,143 |
| 11 | 9.0% | 74,920 | 0.3020 | 22,624 |
| 12 | 8.0% | 80,914 | 0.2708 | 21,914 |
| 13 | 7.0% | 86,578 | 0.2429 | 21,030 |
| 14 | 6.0% | 91,773 | 0.2178 | 19,992 |
| 15 | 5.0% | 96,361 | 0.1954 | 18,827 |
| Present value of explicit period | 3,50,550 | |||
| Terminal value 15,56,603, discounted | 3,04,127 | |||
| Enterprise value | 6,54,677 | |||
| Less: net debt | 32,000 | |||
| Equity value | 6,86,677 | |||
Terminal value is 46.5% of enterprise value. Above roughly 75%, the valuation is a bet on the perpetuity, not on the forecast — say so before a student reads any signal into year 4.
What changes the market’s implied growth
| WACC ↓ / terminal g → | 4.0% | 4.5% | 5.0% | 5.5% | 6.0% |
|---|---|---|---|---|---|
| 9.50% | 5.7% | 5.1% | 4.3% | 3.5% | 2.6% |
| 10.50% | 7.7% | 7.2% | 6.6% | 6.0% | 5.2% |
| 11.50% | 9.6% | 9.1% | 8.6% | 8.1% | 7.5% |
| 12.50% | 11.3% | 10.9% | 10.5% | 10.0% | 9.5% |
| 13.50% | 13.0% | 12.6% | 12.3% | 11.9% | 11.4% |
Every cell prices the same company at the same price. The spread across this grid is the honest width of the answer — the discount rate is an assumption, so “the market expects X%” is always a sentence with a footnote.
Preset figures are illustrative teaching inputs, not live market data. Connect a feed to the four blue inputs and the arithmetic below them does not change.