Reverse DCF
What growth does the market imply for ARE%26M?
Working backwards from the current price to find the FCF growth assumption baked in.
conservative
5.5% 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
₹796
Historical Growth
0.3%
FCF Yield
6.77%
Price / FCF
14.8x
Plain English
To justify today's price of ₹796.30, ARE&M.NS needs to grow its free cash flow at 5.5% per year for the next 10 years. That is 5.2% faster than its historical growth rate of 0.3%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.
Adjust Assumptions
Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | 0.3% | ₹542 | -32.0% |
| Half implied | 2.8% | ₹647 | -18.8% |
| Implied | 5.5% | ₹796 | +0.0% |
| GDP rate | 10.0% | ₹1,110 | +39.4% |
At Historical Growth Rate
DCF horizon: 10 years. At 0.3% growth, the model values ARE%26M at ₹542, below today's ₹796.
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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.