What's priced in?

Start with the price. Explore the growth it would take to justify it.

USD millionsEnter financial amounts and diluted shares in millions. Share prices are in dollars. For example, $1 billion revenue = 1,000.

01 Starting point

Use the latest full-year or trailing twelve-month figures.

Base-year revenue ($m)

Base-year operating NWC ($m)

Forecast years

Target share price ($)

Enter the price you want to test. This model does not fetch a live quote.

Operating net working capital = non-cash operating current assets minus non-debt operating current liabilities. Negative NWC is supported.

02 Forecast assumptions

Revenue growth is solved as one constant annual rate across the forecast. Set the other assumptions for each year. All entries below are percentages.

Growth is year over year. All other assumptions are percentages of that year's revenue, except the tax rate.
Year	Revenue growth	EBIT margin	Tax rate	D&A / revenue	Capex / revenue	NWC / revenue
1	Solved	Year 1 EBIT margin (%)	Year 1 cash tax rate (%)	Year 1 depreciation and amortization as a share of revenue (%)	Year 1 capital expenditures as a share of revenue (%)	Year 1 net working capital as a share of revenue (%)
2	Solved	Year 2 EBIT margin (%)	Year 2 cash tax rate (%)	Year 2 depreciation and amortization as a share of revenue (%)	Year 2 capital expenditures as a share of revenue (%)	Year 2 net working capital as a share of revenue (%)
3	Solved	Year 3 EBIT margin (%)	Year 3 cash tax rate (%)	Year 3 depreciation and amortization as a share of revenue (%)	Year 3 capital expenditures as a share of revenue (%)	Year 3 net working capital as a share of revenue (%)
4	Solved	Year 4 EBIT margin (%)	Year 4 cash tax rate (%)	Year 4 depreciation and amortization as a share of revenue (%)	Year 4 capital expenditures as a share of revenue (%)	Year 4 net working capital as a share of revenue (%)
5	Solved	Year 5 EBIT margin (%)	Year 5 cash tax rate (%)	Year 5 depreciation and amortization as a share of revenue (%)	Year 5 capital expenditures as a share of revenue (%)	Year 5 net working capital as a share of revenue (%)
6	Solved	Year 6 EBIT margin (%)	Year 6 cash tax rate (%)	Year 6 depreciation and amortization as a share of revenue (%)	Year 6 capital expenditures as a share of revenue (%)	Year 6 net working capital as a share of revenue (%)
7	Solved	Year 7 EBIT margin (%)	Year 7 cash tax rate (%)	Year 7 depreciation and amortization as a share of revenue (%)	Year 7 capital expenditures as a share of revenue (%)	Year 7 net working capital as a share of revenue (%)
8	Solved	Year 8 EBIT margin (%)	Year 8 cash tax rate (%)	Year 8 depreciation and amortization as a share of revenue (%)	Year 8 capital expenditures as a share of revenue (%)	Year 8 net working capital as a share of revenue (%)
9	Solved	Year 9 EBIT margin (%)	Year 9 cash tax rate (%)	Year 9 depreciation and amortization as a share of revenue (%)	Year 9 capital expenditures as a share of revenue (%)	Year 9 net working capital as a share of revenue (%)
10	Solved	Year 10 EBIT margin (%)	Year 10 cash tax rate (%)	Year 10 depreciation and amortization as a share of revenue (%)	Year 10 capital expenditures as a share of revenue (%)	Year 10 net working capital as a share of revenue (%)

EBIT margin is after depreciation and amortization. Only the selected 1–10 forecast years are used. Cash taxes are charged on positive EBIT; losses do not generate a tax refund.

03 Discount rate

Cash flows are discounted at year-end using WACC.

Weighted average cost of capital

WACC (%) — direct entry

Used when “Calculate from cost of capital” is selected.

Risk-free rate (%)

Levered equity beta

Equity risk premium (%)

Pre-tax cost of debt (%)

Debt / total capital (%)

Tax rate for debt shield (%)

Use market-value capital weights and a risk-free rate in the same currency as the cash flows. Equity weight is 100% minus debt weight.

04 Terminal value

Estimate the business value beyond your forecast.

Terminal-value method

Long-term growth (%)

Must be below WACC. Year N+1 revenue grows at this rate, with the final forecast year's margin, tax, D&A, capex, and NWC percentages. The change in NWC is recalculated for the slower or faster growth rate.

EV / EBITDA exit multiple (×)

Used when the exit-multiple method is selected. Applied to the final forecast year's EBITDA, which must be positive.

05 From business value to equity

Use values as of the valuation date. Keep cash separate from other non-operating assets.

Excess cash & equivalents ($m)

Debt & debt-like claims ($m)

Other non-operating assets ($m)

Preferred equity ($m)

Minority interest ($m)

Diluted shares outstanding (millions)

For consolidated cash flows, include the value attributable to minority shareholders. Treat leases and other debt-like claims consistently with your operating forecasts.

Reset to example

Your entries are used for this calculation and are not saved on our server. Downloads contain your inputs; share them only when you intend others to see your assumptions.

Illustrative example — replace the assumptions with your own.

Reverse DCF · target $25.00

The growth behind the price

Constant annual revenue growth during your forecast, holding all other assumptions fixed. Search range: −50% to +100%.

Reconciled value per share

$25.00

Matches the entered $25.00 target

Final forecast-year revenue

$1,812.58m

USD millions

Enterprise value $2,600.00m · common equity $2,500.00m · WACC 10%. Displayed growth is rounded; the model below retains full precision.

Inspect the projected cash flows

USD millions, except discount factor
Financial line	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	1,126.31	1,268.58	1,428.82	1,609.3	1,812.58
EBITDA	270.32	304.46	342.92	386.23	435.02
EBIT	225.26	253.72	285.76	321.86	362.52
Cash taxes	56.32	63.43	71.44	80.47	90.63
NOPAT	168.95	190.29	214.32	241.4	271.89
Add: D&A	45.05	50.74	57.15	64.37	72.5
Less: capital expenditures	67.58	76.11	85.73	96.56	108.75
Net working capital	112.63	126.86	142.88	160.93	181.26
Less: change in NWC	12.63	14.23	16.02	18.05	20.33
Unlevered free cash flow	133.79	150.69	169.72	191.16	215.31
Discount factor	0.9091	0.8264	0.7513	0.6830	0.6209
PV of free cash flow	121.63	124.54	127.52	130.57	133.69

How this model works

Unlevered free cash flow = EBIT − cash taxes + depreciation & amortization − capital expenditures − change in operating net working capital. Cash flows are discounted at year-end. Interest payments are not subtracted from FCFF; financing costs are reflected in WACC.

Cost of equity = risk-free rate + beta × equity risk premium. WACC = cost of equity × equity weight + pre-tax cost of debt × (1 − tax rate) × debt weight.

Perpetual-growth terminal value = Year N+1 FCFF ÷ (WACC − growth). Exit-multiple terminal value = Year N EBITDA × exit multiple. Terminal value is discounted from the end of the forecast horizon. Common equity value = enterprise value + excess cash + non-operating assets − debt − preferred equity − minority interest.

The final year's operating percentages must be sustainable in the terminal period, including enough reinvestment to support growth. Taxes use positive EBIT without loss carryforwards. This is an operating-company model; it does not separately model financial institutions, stock-based compensation, future dilution, or changing capital structures. Use diluted shares and consistent assumptions where applicable.

Reverse DCF searches for a constant annual revenue growth rate from −50% to +100% that matches your target price. All other operating inputs, terminal assumptions, share count, and equity adjustments stay fixed. The terminal period still uses your long-term growth or exit multiple, not the solved forecast growth.

The bounded numerical search checks crossings and verifies each reported price match. It can miss a tangency or multiple roots between search samples; “no match found” does not prove that no mathematical solution exists. Multiple matches are shown separately. Implied growth is conditional on your assumptions, not a measurement of market consensus.

Background: Damodaran — valuation examples and implied growth.

Reference: CFA Institute — Free Cash Flow Valuation and Aswath Damodaran — Valuation. This is a scenario based on your assumptions, not a forecast of market prices.