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 TCS at ₹2,498.50?
Growth in latest fcf needed to justify ₹2,498.50 at a 12% hurdle & 20x exit.
3-year compound growth in free cash flow (annual reports).
At +7.3%/yr growth · Price ₹2,498.50
At ₹2,498.50, the market is pricing in +6.0% a year of growth in latest fcf for the next 10 years, versus +7.3% a year delivered over the last 3 years. The price is broadly in line with the base-case growth assumption. Using +7.3%/yr (historical growth, capped at 25%), fair value is ₹2,767.73 (+10.8% 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 | ₹2,592.46 +3.8% | ₹2,902.55 +16.2% | ₹3,212.64 +28.6% | ₹3,522.72 +41% | ₹3,832.81 +53.4% |
| 11% Hurdle | ₹2,413.40 -3.4% | ₹2,696.66 +7.9% | ₹2,979.92 +19.3% | ₹3,263.17 +30.6% | ₹3,546.43 +41.9% |
Unlock Full 5x5 Valuation Sensitivity Matrix for TCS
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.