Reverse DCF and market-implied growth rate solver (calc dcf)

[iamsaquib8]

What

Roadmap idea. Traditional Discounted Cash Flow (DCF) models require investors to guess future growth rates, which often leads to confirmation bias. A Reverse DCF turns the equation around: given today's market price, what 10-year Free Cash Flow (or EPS) growth rate is the market already pricing in?

Design

• stockwise calc dcf <SYMBOL> (or stockwise dcf <SYMBOL>):
  • Solves for the implied 10-year compounded annual growth rate (CAGR) needed to justify the current market cap at a specified cost of equity / discount rate (e.g. 10%, 12%, or 10-year sovereign yield + equity risk premium).
  • Terminal value assumptions are made fully transparent (e.g. terminal growth rate 4%–5%, terminal exit multiple).
  • Displays a sensitivity matrix across discount rates (10%, 12%, 14%) vs terminal growth rates (3%, 4%, 5%).
  • Compares the market-implied growth rate against:
    • The company's actual 3-year, 5-year, and 10-year historical Revenue and PAT CAGR.
    • Sector median growth rates.
  • Contextual valuation percentile: Shows where today's P/E, P/B, and EV/EBITDA sit relative to their 5Y and 10Y historical bands (e.g. "P/E 68x is in the 94th percentile of its 10Y history").
  • Neutral research tool: highlights what expectations are baked in so the investor can judge if they are realistic or heroic.

Done when

• Solves for the implied growth rate deterministically and renders the sensitivity grid.
• Compares implied rate with historical multi-year growth and valuation percentiles.
• Conforms to #260 and DISCLAIMER.md: pure mathematical solver, never a price target or buy/sell valuation call.
• Exposes --json for MCP tool integration.

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Upvote or comment below if you use Reverse DCF in your investment process. What discount rate and terminal growth conventions do you prefer? Ideas with community demand get scheduled on the roadmap.