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 HDFCBANK at ₹788.25?
Growth in latest fcf needed to justify ₹788.25 at a 12% hurdle & 20x exit.
3-year compound growth in free cash flow (annual reports).
At +25.0%/yr growth · Price ₹788.25
At ₹788.25, the market is pricing in +2.2% a year of growth in latest fcf for the next 10 years, versus +35.0% a year delivered over the last 3 years. A pace that high is rarely sustained for a decade, so the base case caps it at 25%. The price asks for less growth than the base case assumes — expectations look undemanding. Using +25.0%/yr (historical growth, capped at 25%), fair value is ₹5,275.02 (+569.2% 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 | ₹4,768.68 +505% | ₹5,512.61 +599.3% | ₹6,256.54 +693.7% | ₹7,000.47 +788.1% | ₹7,744.40 +882.5% |
| 11% Hurdle | ₹4,383.23 +456.1% | ₹5,062.79 +542.3% | ₹5,742.35 +628.5% | ₹6,421.91 +714.7% | ₹7,101.47 +800.9% |
Unlock Full 5x5 Valuation Sensitivity Matrix for HDFCBANK
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.