Reverse DCF
What growth does the market imply for ABB?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
30.5% 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 12.6%. High execution risk.
Current Price
₹6,794
Historical Growth
12.6%
FCF Yield
0.68%
Price / FCF
147.0x
Plain English
To justify today's price of $6794.00, ABB.NS needs to grow its free cash flow at 30.5% per year for the next 10 years. That is 17.9% faster than its historical growth rate of 12.6%. 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% | ₹1,422 | -79.1% |
| Historical | 12.6% | ₹1,729 | -74.6% |
| Half implied | 15.2% | ₹2,124 | -68.7% |
| Implied | 30.5% | ₹6,774 | -0.3% |
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Bear/base/bull scenarios, sensitivity heatmap, Monte Carlo, 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.