Reverse DCF
What growth does the market imply for VBL?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
32.4% 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 14.3%. High execution risk.
Current Price
₹526
Historical Growth
14.3%
FCF Yield
0.43%
Price / FCF
231.1x
Plain English
To justify today's price of ₹526.25, VBL.NS needs to grow its free cash flow at 32.4% per year for the next 10 years. That is 18.1% faster than its historical growth rate of 14.3%. 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 |
|---|---|---|---|
| GDP rate | 10.0% | ₹86 | -83.7% |
| Historical | 14.3% | ₹123 | -76.6% |
| Half implied | 16.2% | ₹145 | -72.5% |
| Implied | 32.4% | ₹526 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 14.3% growth, the model values VBL at ₹123, below today's ₹526.
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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.