Reverse DCF
What growth does the market imply for DMART?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
27.3% implied annual FCF growth
The market is pricing in exceptional growth that only a handful of companies sustain for a decade. For context, this company has historically grown at 3.0%. High execution risk.
Current Price
₹3,994
Historical Growth
3.0%
FCF Yield
0.87%
Price / FCF
114.9x
Plain English
To justify today's price of ₹3993.60, DMART.NS needs to grow its free cash flow at 27.3% per year for the next 10 years. That is 24.3% faster than its historical growth rate of 3.0%. At its historical growth rate, the stock cannot justify its current price within a 20-year horizon. The market is pricing in a step-change in performance.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | 3.0% | ₹581 | -85.5% |
| GDP rate | 10.0% | ₹1,016 | -74.6% |
| Half implied | 13.7% | ₹1,360 | -65.9% |
| Implied | 27.3% | ₹3,994 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 3.0% growth, the model values DMART at ₹581, below today's ₹3,994.
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Bear/base/bull scenarios, sensitivity heatmap, reverse DCF, and more.
Run Full Analysis →This is an analytical tool, not investment advice. Implied growth is a mathematical inversion of the DCF model and depends on WACC and terminal growth assumptions. YieldIQ is not registered with SEBI as an investment adviser.