Reverse DCF

What growth does the market imply for LTM?

Working backwards from the current price to find the FCF growth assumption baked in.

conservative

7.6% implied annual FCF growth

The market is pricing in below-GDP growth — very conservative assumption. If the company delivers anywhere near its historical rate, there is significant upside.

Reverse DCF computed against price ₹3,833 · captured just nowRefresh for current price →

Current Price

₹3,833

Historical Growth

2.0%

FCF Yield

4.12%

Price / FCF

24.2x

Plain English

To justify today's price of ₹3833.20, LTM.NS needs to grow its free cash flow at 7.6% per year for the next 10 years. That is 5.6% faster than its historical growth rate of 2.0%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.

Adjust Assumptions

9.8%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Historical2.0%₹2,436-36.5%
Half implied3.8%₹2,812-26.6%
Implied7.6%₹3,833+0.0%
GDP rate10.0%₹4,615+20.4%

At Historical Growth Rate

DCF horizon: 10 years. At 2.0% growth, the model values LTM at ₹2,436, below today's ₹3,833.

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Bear/base/bull scenarios, sensitivity heatmap, reverse DCF, and more.

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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.

LTM Reverse DCF — Market Implies 7.6% FCF Growth | YieldIQ