Welcome to Reverse DCF page to understand market expectations about your interested Stock
Reverse DCF is a method to determine implied growth rate or future cash flows from a company's stock price. It involves working backwards from the market price to estimate the assumptions behind it. By applying this analysis, investors can assess if the stock is overvalued or undervalued based on their own analysis.
More info here: Investopedia
You will need two key inputs for getting the growth rates market is expecting from your favorite company.
marketcap or stock price of the stock: e.g for AAPL 177 is stock Price as 11 Aug, 2023
sustained cash flow or free cash flow of the stock OR per share fcf/eps for the stock, e.g: EPS of AAPL is 6.11 in FY 2022
1. (new beta feature) Reverse DCF based on fcf(free cash flow) for AMZN price: 147.42 as of date: 2023-12-08 [show/hide charts] Current Market Price: 147.42 as of 2023-12-08
T means Trillions, B means Billions, M means Millions, all values are in USD(or company filed currency) if not specified as percent/number in the Entry column
Disclaimer: Data is provided as is, please do your due diligence before making any investments, Markets can be very volatile
In this report, we are doing Reverse DCF assuming for today's current price: 147.42 to meet market expectations, what growth rate company should grow for next 10 years? Each row can be thought as 1. After 10 years from today - if PE of the stock is X, what should be the growth rate from today to meet that PE in future 2. lower PE in future is a reasonable justification, higher PE in future is risky 3. Assumptions: We are using discount rate as 10%, Period as 10 years and Reinvestment Rate of 100% in the default report, overriding will change this values 4. You can override values by passing the input data as a query param to the URL 5. direct link: reverse dcf for AMZN 6. override link: reverse dcf with override in URL for AMZN 7. inf values means, fcf is negative or we do not have data for the stock/ticker
2. Showing REVERSE_DCF_RAW report for AMZN [show/hide charts] Current Market Price: 147.42 as of 2023-12-08
T means Trillions, B means Billions, M means Millions, all values are in USD(or company filed currency) if not specified as percent/number in the Entry column
Disclaimer: Data is provided as is, please do your due diligence before making any investments, Markets can be very volatile
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