Reverse DCF
What growth does the market imply for MRF?
Working backwards from the current price to find the FCF growth assumption baked in.
conservative
4.5% 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.
Current Price
₹1,25,515
Historical Growth
2.0%
FCF Yield
5.71%
Price / FCF
17.5x
Plain English
To justify today's price of ₹125515.00, MRF.NS needs to grow its free cash flow at 4.5% per year for the next 10 years. That is 2.5% 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.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | 2.0% | ₹1,02,765 | -18.1% |
| Half implied | 2.2% | ₹1,04,951 | -16.4% |
| Implied | 4.5% | ₹1,25,515 | +0.0% |
| GDP rate | 10.0% | ₹2,01,825 | +60.8% |
At Historical Growth Rate
DCF horizon: 10 years. At 2.0% growth, the model values MRF at ₹1,02,765, below today's ₹1,25,515.
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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.