Reverse DCF

Reverse DCF does not declare a company’s fair value.

A conventional DCF starts with assumptions about future revenue, margins, and free cash flow, then discounts those cash flows back to the present. Reverse DCF flips that order.

It treats the current share price as already given, and works backward to estimate the growth rate and cash-flow assumptions required to justify it.

The point is less “is this price right?” and more “is the future this price requires actually plausible?”