What Would I Have to Believe
A valuation framing popularized by NYU finance professor Aswath Damodaran for using reverse DCF (and other reverse-engineering techniques) to test market assumptions. Rather than asking "what is this worth?" (which produces an answer biased toward the analyst's priors), the framework asks "for THIS market price to make sense, what assumptions about growth, margins, or discount rate would I need to accept?" The answer becomes a tight, falsifiable hypothesis the investor can test against operating evidence. Often used for high-multiple growth stocks where conventional DCF requires too many speculative inputs to produce an unbiased answer.
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Related terms
Ambiguity Aversion · Anchored Assumption · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta
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