What cash-flow growth does this stock price require?
A reverse DCF starts with enterprise value and solves for the annual unlevered free-cash-flow growth required by the entered valuation. It is an expectations map, not a price target.
Market-implied FCFF growth
The solver finds the constant annual growth in unlevered free cash flow to the firm that equates forecast and terminal cash flows to enterprise value.
Your assumption is 5.69 pp versus the implied rate. Terminal value is 71.7% of enterprise value.
| Discount rate | 2.5% terminal | 3.0% terminal | 3.5% terminal |
|---|---|---|---|
| 9.0% | 0.24% | -1.16% | -2.67% |
| 10.0% | 3.54% | 2.31% | 0.99% |
| 11.0% | 6.60% | 5.49% | 4.32% |
Input provenance
| Input | Value | Period | Source |
|---|---|---|---|
| Enterprise value | $1000m | Visitor input | Manual input |
| Base FCFF | $70m | Visitor input | Manual input |
| Discount rate | 10% | Model assumption | Visitor assumption |
| Terminal growth | 3% | Model assumption | Visitor assumption |
Use enterprise value with unlevered FCFF. This calculator does not infer FCFF from operating cash flow minus capital expenditure. Formula: EV = Σ FCFF₀(1+g)ᵗ/(1+r)ᵗ + FCFFₙ(1+gₜ)/((r−gₜ)(1+r)ⁿ).
How to interpret the surface
Each cell solves the same enterprise value under a different discount rate and terminal growth rate. If a small assumption change produces a large change in implied FCFF growth, the conclusion is assumption-sensitive. “n/m” means no solution exists inside the bounded −50% to 100% range.