Reverse DCF & Intrinsic Value Calculator
Reverse engineer what the current stock price implies about future cash flow growth · EOD close on 06 Nov 2026.
Interactive Reverse DCF & Intrinsic Value Calculator
Inversion Valuation ModelWhat annual cash flow growth is the market pricing into RELIANCE at ₹1,320.00?
Growth in normalised fcf (3y avg) needed to justify ₹1,320.00 at a 12% hurdle & 20x exit.
3-year compound growth in free cash flow (annual reports).
At +6.6%/yr growth · Price ₹1,320.00
At ₹1,320.00, the market is pricing in +19.8% a year of growth in normalised fcf (3y avg) for the next 10 years, versus +6.6% a year delivered over the last 3 years. The price asks for more growth than the base case assumes — expectations are demanding. Using +6.6%/yr (historical growth, capped at 25%), fair value is ₹365.35 (-72.3% vs price).
Adjust Valuation Assumptions & Hurdle Rates
5x5 Valuation Sensitivity Matrix (Fair Value per Share vs Hurdle & Exit Multiple)
| Discount Rate \ Multiple | 14x | 17x | 20x | 23x | 26x |
|---|---|---|---|---|---|
| 10% Hurdle | ₹331.06 -74.9% | ₹392.51 -70.3% | ₹453.97 -65.6% | ₹515.42 -61% | ₹576.88 -56.3% |
| 11% Hurdle | ₹295.34 -77.6% | ₹351.48 -73.4% | ₹407.62 -69.1% | ₹463.76 -64.9% | ₹519.89 -60.6% |
Unlock Full 5x5 Valuation Sensitivity Matrix for RELIANCE
Explore intrinsic values across 25 combinations of discount rates (10%–14%) and exit multiples (14x–26x), plus export the full 10-year projected cash flow model.
How Reverse DCF Works: The Inversion & Intrinsic Valuation Framework
1Why Normal DCFs Fail
Traditional DCF models depend heavily on guesswork: an analyst assumes 18% growth and gets ₹2,200, while another assumes 12% and gets ₹1,400. In reality, garbage in equals garbage out.
2The Power of Inversion
Reverse DCF inverts the question: Instead of guessing the future, we ask: “Given today's price, what Free Cash Flow growth is the entire market collectively pricing in?”
3Evaluating Margin of Safety
If the market prices in 14% growth while the company has historically delivered 18%+ with high ROCE and low debt, an investor enjoys a clear, quantifiable margin of safety before making a transaction.