Reverse DCF
What growth does the market imply for AAREYDRUGS?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
21.3% 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 15.4%. High execution risk.
Current Price
₹88
Historical Growth
15.4%
FCF Yield
2.03%
Price / FCF
49.1x
Plain English
To justify today's price of $88.33, AAREYDRUGS.NS needs to grow its free cash flow at 21.3% per year for the next 10 years. That is 6.0% faster than its historical growth rate of 15.4%. At its historical growth rate, the stock would take 18 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% | ₹30 | -66.0% |
| Half implied | 10.7% | ₹32 | -63.5% |
| Historical | 15.4% | ₹51 | -41.9% |
| Implied | 21.3% | ₹88 | -0.5% |
At Historical Growth Rate
It would take 18 years for AAREYDRUGS to organically grow into today's price assuming its historical FCF growth of 15.4%.
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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.