Introducing Our Reverse DCF Calculator and How To Use It

Hi everyone,

If you’ve been following our tweets recently or have been on our site, you may have noticed that we’ve been using our Reverse DCF (discounted cash flow) valuation calculator to value stocks.

This is an extremely useful tool that can help you determine how much growth is priced into a stock.

Here’s an example of us using the calculator on Nvidia (NASDAQ:NVDA) to determine that the market is pricing a 24.3% growth rate based on its valuation.

Essentially, if you think NVDA can beat this growth rate, then it's undervalued. If not, it’s overvalued.

A Step-By-Step Guide to Using the Reverse DCF Calculator

Are you a bit confused as to how it works? Well, we’ve got good news for you. The good news is that we wrote a step-by-step guide for how to use our Reverse DCF Calculator, complete with a real-life example on Microsoft (NASDAQ:MSFT) stock. Check it out by clicking below.

Where Can I Find the Reverse DCF Tool?

You can find the tool in the link above, or you can go directly to the Reverse DCF Calculator page (which also has instructions on how to use it) by clicking below.

You can also check out our other calculators here!