Instead of producing a target price, a reverse DCF produces a question: is the growth the price implies achievable? That is usually a more answerable question than forecasting ten years of cash flow from scratch.
It is the most practical use of DCF machinery for a trader, because it converts a valuation debate into a testable operating claim that the next few earnings-report releases can confirm or deny.
Example: at $26 with an 8.1% discount rate and 2.5% terminal growth, Northwind Tools must grow unlevered free cash flow about 9.5% a year for ten years. Consensus has it at 11%, so the price embeds slightly less than consensus.
Related: discounted-cash-flow, sensitivity-analysis, consensus-estimate, terminal-value, wacc