Reverse DCF
What growth does the market imply for BASF?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
24.5% 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 20.0%. High execution risk.
Current Price
₹3,668
Historical Growth
20.0%
FCF Yield
1.07%
Price / FCF
93.1x
Plain English
To justify today's price of $3667.90, BASF.NS needs to grow its free cash flow at 24.5% per year for the next 10 years. That is 4.5% faster than its historical growth rate of 20.0%. At its historical growth rate, the stock would take 14 years to justify today's price. The market is effectively paying for a perfect future.
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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% | ₹1,162 | -68.3% |
| Half implied | 12.2% | ₹1,389 | -62.1% |
| Historical | 20.0% | ₹2,561 | -30.2% |
| Implied | 24.5% | ₹3,631 | -1.0% |
At Historical Growth Rate
It would take 14 years for BASF to organically grow into today's price assuming its historical FCF growth of 20.0%.
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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.