Reverse DCF Calculator (Market-Implied 10-Year Free Cash Flow Growth Rate Solver)

Solve for the 10-year Free Cash Flow CAGR implied by a stock’s current Enterprise Value.

Market-Implied 10-Year FCF Growth Rate
8.76 % CAGR
Current EV / FCF Multiple 26.67 ×
Current FCF Yield (FCF ÷ EV) 3.75 %
Implied Year-10 Free Cash Flow 10,418.33 USD
Inputs
⚡ Scenarios:
Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
currency
Current Enterprise Value (Market Cap + Debt − Cash, in $ or $M).
currency
Trailing 12-month Free Cash Flow (FCF₀, in same units).
%/yr
Weighted Average Cost of Capital (WACC %).
%/yr
Perpetual terminal growth rate after Year 10 (%).
Results & Graph
Market-Implied 10-Year FCF Growth Rate
8.76 % CAGR
Current EV / FCF Multiple
26.67 ×
Current FCF Yield (FCF ÷ EV)
3.75 %
Implied Year-10 Free Cash Flow
10,418.33 USD

Market-Implied 10-Year FCF Growth Rate

Graph 1 • Reverse DCF Implied Growth • Domain Architecture & Live Telemetry Maps Current Enterprise Value, Current Annual Free Cash Flow, Wacc Discount Rate Pct through Reverse DCF Implied Growth Formula.
PORTFOLIO & WEALTH MANAGEM Market-Implied 10-Year FCF 8.76 % CAGR Current EV / FCF Multiple 26.67 × Reverse DCF Implied Growth • Component Waterfall Market-Implied 10-Year FCF Gro 8.76 % CAGR Current EV / FCF Multiple 26.67 × Current FCF Yield (FCF ÷ EV) 3.75 % Implied Year-10 Free Cash Flow 10,418.33 USD
Graph 2 • Market-Implied 10-Year FCF Growth Rate Across Current Enterprise Value Sweep (40% → 160%) Evaluates Find g_10yr such that Σ_{t=1..10} [FCF_0(1+g)^t / (1+WACC)^t] + Terminal across 7 operating points (current input highlighted).
-3.31 % CAGR 6.55 % CAGR 16.41 % CAGR -3.31 48.0k 2.08 72.0k 5.84 96.0k 8.76 120.0k 11.14 144.0k 13.16 168.0k 14.92 192.0k
Graph 3 • Joint Sensitivity: Current Enterprise Value × Current Annual Free Cash Flow Compares Market-Implied 10-Year FCF Growth Rate when Current Annual Free Cash Flow is shifted +25% (solid) vs. −25% (dashed).
0 % CAGR 8.79 % CAGR 17.58 % CAGR --- Current Annual Free Cash Flow @ 75% 1.17 -30% 3.72 -15% 5.84 +0% 7.67 +15% 9.27 +30%
Summary: To justify a USD 120,000.00 Enterprise Value on USD 4,500.00 current FCF (at 9% WACC and 3% terminal growth), Free Cash Flow must compound at 8.76%/yr for 10 years.
Summary: To justify a USD 120,000.00 Enterprise Value on USD 4,500.00 current FCF (at 9% WACC and 3% terminal growth), Free Cash Flow must compound at 8.76%/yr for 10 years.
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Formula & Mathematical Methodology: Reverse DCF Implied Growth Formula

Find g10yr such that Σt=1..10 [FCF0(1+g)t / (1+WACC)t] + TerminalValue / (1+WACC)10 = EnterpriseValue
Find g_10yr such that Σ_{t=1..10} [FCF_0(1+g)^t / (1+WACC)^t] + TerminalValue / (1+WACC)^10 = EnterpriseValue
  • currentEnterpriseValue: Current Enterprise Value (currency)
  • currentAnnualFreeCashFlow: Current Annual Free Cash Flow (currency)
  • waccDiscountRatePct: Wacc Discount Rate Pct (%/yr)
  • terminalPerpetualGrowthPct: Terminal Perpetual Growth Pct (%/yr)

Rounding: Currency outputs round to 2 decimal places; effective rates and multiples display to 2 decimal places.

Worked Example: Benchmark Scenario: Reverse DCF Implied Growth

Solve for the 10-year Free Cash Flow CAGR implied by a stock’s current Enterprise Value.

  1. Enter your financial, equity compensation, or tax parameters.
  2. Evaluate the governing equation: Find g_10yr such that Σ_{t=1..10} [FCF_0(1+g)^t / (1+WACC)^t] + TerminalValue / (1+WACC)^10 = EnterpriseValue.
  3. Review the primary result, supporting metrics, and 3 interactive SVG charts.
Result: Computes Reverse DCF Implied Growth via Find g_10yr such that Σ_{t=1..10} [FCF_0(1+g)^t / (1+WACC)^t] + TerminalValue / (1+WACC)^10 = EnterpriseValue.

Frequently Asked Questions

How does the Reverse DCF Calculator (Market-Implied 10-Year Free Cash Flow Growth Rate Solver) calculate results?

It evaluates Find g_10yr such that Σ_{t=1..10} [FCF_0(1+g)^t / (1+WACC)^t] + TerminalValue / (1+WACC)^10 = EnterpriseValue directly in your browser and updates three custom SVG visualizations in real time.

Can I use Goal Seek to solve backwards for a target amount?

Yes. Click "🎯 Goal Seek" in the results toolbar to solve backwards for any numeric input parameter.

Are my financial and compensation numbers kept private?

Yes. All calculations execute 100% locally in your browser with zero server transmission.

Finance & Investing · Portfolio & Wealth Management

Reverse DCF Calculator (Market-Implied 10-Year Free Cash Flow Growth Rate Solver): inputs, method, and how to read the result

Solve for the 10-year Free Cash Flow CAGR implied by a stock’s current Enterprise Value.

Choose inputs for the case you are checking

The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.

  • Display Currency: Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
  • Current Enterprise Value: Current Enterprise Value (Market Cap + Debt − Cash, in $ or $M).
  • Current Annual Free Cash Flow: Trailing 12-month Free Cash Flow (FCF₀, in same units).
  • Wacc Discount Rate Pct: Weighted Average Cost of Capital (WACC %).

What the calculation includes

With the default values shown, Market-Implied 10-Year FCF Growth Rate is 8.76 % CAGR. The calculation follows Reverse DCF Implied Growth Formula; the formula and variable definitions above show how the inputs combine.

One-input check: With the other defaults held constant, changing Current Enterprise Value from 120,000 currency to 132,000 currency changes Market-Implied 10-Year FCF Growth Rate from 8.76 % CAGR to 10 % CAGR. This is a comparison inside the calculator's stated model, not a prediction.

Where to use caution

  • Uses published statutory rules, standard compounding conventions, and marginal tax rates entered by the user.
  • For educational and financial planning analysis; consult a CPA or qualified advisor for personalized tax filings.

Scope: Global / US / India / UK / Canada / Australia Statutory Standards Check the assumptions and limitations against your situation before relying on the estimate.

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