Reverse DCF
What growth does the market imply for SMLMAH?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
20.3% 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 15.5%. High execution risk.
Current Price
₹3,884
Historical Growth
15.5%
FCF Yield
2.05%
Price / FCF
48.7x
Plain English
To justify today's price of ₹3883.80, SMLMAH.NS needs to grow its free cash flow at 20.3% per year for the next 10 years. That is 4.8% faster than its historical growth rate of 15.5%. At its historical growth rate, the stock would take 16 years to justify today's price. The market is effectively paying for a perfect future.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| GDP rate | 10.0% | ₹1,632 | -58.0% |
| Half implied | 10.1% | ₹1,651 | -57.5% |
| Historical | 15.5% | ₹2,611 | -32.8% |
| Implied | 20.3% | ₹3,884 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 15.5% growth, the model values SMLMAH at ₹2,611, below today's ₹3,884.
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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.