Reverse DCF
What growth does the market imply for BAJAJHFL?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
30.1% 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 18.6%. High execution risk.
Current Price
₹89
Historical Growth
18.6%
FCF Yield
2.62%
Price / FCF
38.1x
Plain English
To justify today's price of $89.00, BAJAJHFL.NS needs to grow its free cash flow at 30.1% per year for the next 10 years. That is 11.6% faster than its historical growth rate of 18.6%. 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% | ₹0 | -100.0% |
| Half implied | 15.1% | ₹0 | -100.0% |
| Historical | 18.6% | ₹0 | -100.0% |
| Implied | 30.1% | ₹90 | +0.6% |
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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.