Valuation Tool — Comparison Mode

Reverse DCF: Side-by-Side

Enter two companies in the same sector. See what growth rate each price is already implying — and which one asks you to believe less.

Shared settings — apply to both companies

Interest rate (risk-free)11.0%

Current T-bill / PIB rate

Equity risk premium6.0%

Extra return for owning stocks

Beta1.0×

Keep same for fair sector comparison

Required return = 11.0% + 1.0 × 6.0%

= 17.0%

Projection period

3 years

5 years

10 years

Enter both companies

Company A

Company Name

EPS / FCF per Share — Rs

Current Price — Rs

Company B

Company Name

EPS / FCF per Share — Rs

Current Price — Rs

↩ What each price is already implying

Company A — Implied Growth

—

annual FCF growth baked in

Enter numbers above to see the result.

Company B — Implied Growth

—

annual FCF growth baked in

Enter numbers above to see the result.

📊 Comparison Verdict

Enter both companies to see the comparison.

Sensitivity — upside at different growth rates

Both companies plotted on the same axis. Above zero = undervalued at that growth assumption. Where the lines diverge tells you which company gives more room to be wrong.

Company A

Company B

Zero line = current price

↪ Your estimate — set independently for each company

Company A

FCF Growth 8.0%

Your expected FCF growth for Company A

Terminal Growth 3.5%

Forever growth after yr 5. 3–4% typical.

Company B

FCF Growth 8.0%

Your expected FCF growth for Company B

Terminal Growth 3.5%

Forever growth after yr 5. 3–4% typical.

At your growth estimate — fair value per share

Company A — Fair Value

—

fair value per share

—

Company B — Fair Value

—

fair value per share

—

💰 Fair Value Comparison

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How to use this

Use it for same-sector comparisons only — pharma vs pharma, cement vs cement. Keep beta the same for both. The shared CAPM is what makes the comparison fair and apples-to-apples.

The company with the lower implied growth sets a lower bar. If you believe both businesses can grow at a similar rate, the lower-implied one offers more margin of safety.

Tip checker: got a target price for one company? Enter that target price instead of the current price — the tool tells you what growth rate would need to happen for that tip to be correct.

Educational tool only. Not a buy or sell recommendation. Inputs are user-supplied — verify against audited financials. Use a 3-year average EPS for best results. Do not use for banks, insurance, or companies with significant non-cash EPS items. InvestKaar Advisory (SECP Licensed) · investkaar.com