Reverse DCF
What growth does the market imply for VEDL?
Working backwards from the current price to find the FCF growth assumption baked in.
conservative
-3.8% 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
₹310
Historical Growth
14.7%
FCF Yield
12.34%
Price / FCF
8.1x
Plain English
To justify today's price of ₹309.65, VEDL.NS needs to grow its free cash flow at -3.8% per year for the next 10 years. That is 18.5% slower than its historical growth rate of 14.7%. 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 |
|---|---|---|---|
| Implied | -3.8% | ₹310 | +0.0% |
| Half implied | -1.9% | ₹368 | +19.0% |
| GDP rate | 10.0% | ₹1,050 | +239.3% |
| Historical | 14.7% | ₹1,555 | +402.2% |
At Historical Growth Rate
DCF horizon: 10 years. At 14.7% growth, the model values VEDL at ₹1,555, above today's ₹310.
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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.