Reverse DCF
What growth does the market imply for RADICO?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
23.1% 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 3.9%. High execution risk.
Current Price
₹3,477
Historical Growth
3.9%
FCF Yield
1.24%
Price / FCF
80.7x
Plain English
To justify today's price of ₹3477.10, RADICO.NS needs to grow its free cash flow at 23.1% per year for the next 10 years. That is 19.2% faster than its historical growth rate of 3.9%. 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 | 3.9% | ₹719 | -79.3% |
| GDP rate | 10.0% | ₹1,207 | -65.3% |
| Half implied | 11.5% | ₹1,373 | -60.5% |
| Implied | 23.1% | ₹3,477 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 3.9% growth, the model values RADICO at ₹719, below today's ₹3,477.
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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.