Reverse DCF
What growth does the market imply for TRENT?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
32.2% 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 18.0%. High execution risk.
Current Price
₹2,755
Historical Growth
18.0%
FCF Yield
0.62%
Price / FCF
162.4x
Plain English
To justify today's price of ₹2755.30, TRENT.NS needs to grow its free cash flow at 32.2% per year for the next 10 years. That is 14.2% faster than its historical growth rate of 18.0%. 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.
Adjust Assumptions
Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| GDP rate | 10.0% | ₹454 | -83.5% |
| Half implied | 16.1% | ₹766 | -72.2% |
| Historical | 18.0% | ₹896 | -67.5% |
| Implied | 32.2% | ₹2,755 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 18.0% growth, the model values TRENT at ₹896, below today's ₹2,755.
See full DCF analysis
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.