Reverse DCF

What growth does the market imply for AJAXENGG?

Working backwards from the current price to find the FCF growth assumption baked in.

unrealistic

44.9% implied annual FCF growth

The market is pricing in hyper-growth that virtually no established company has sustained for 10 years. This implies either a structural disruption scenario or significant overvaluation.

Current Price

₹528

Historical Growth

20.0%

FCF Yield

0.32%

Price / FCF

313.5x

Plain English

To justify today's price of $527.95, AJAXENGG.NS needs to grow its free cash flow at 44.9% per year for the next 10 years. That is 24.9% faster than its historical growth rate of 20.0%. 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

11.1%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
GDP rate10.0%₹43-91.9%
Historical20.0%₹88-83.3%
Half implied22.4%₹106-80.0%
Implied44.9%₹525-0.6%

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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.