Reverse DCF

What growth does the market imply for ALKEM?

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

reasonable

12.0% implied annual FCF growth

The market's growth assumption looks achievable — it is in line with or below what this company has historically delivered.

Current Price

₹5,554

Historical Growth

18.0%

FCF Yield

3.01%

Price / FCF

33.2x

Plain English

To justify today's price of $5553.50, ALKEM.NS needs to grow its free cash flow at 12.0% per year for the next 10 years. That is 6.0% slower than its historical growth rate of 18.0%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.

Adjust Assumptions

9.8%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Half implied6.0%₹3,382-39.1%
GDP rate10.0%₹4,720-15.0%
Implied12.0%₹5,574+0.4%
Historical18.0%₹9,081+63.5%

At Historical Growth Rate

It would take 6 years for ALKEM to organically grow into today's price assuming its historical FCF growth of 18.0%.

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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.