Reverse DCF
What growth does the market imply for BEML?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
21.5% 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 5.0%. High execution risk.
Current Price
₹1,727
Historical Growth
5.0%
FCF Yield
1.89%
Price / FCF
53.0x
Plain English
To justify today's price of ₹1727.40, BEML.NS needs to grow its free cash flow at 21.5% per year for the next 10 years. That is 16.5% faster than its historical growth rate of 5.0%. 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.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | 5.0% | ₹465 | -73.1% |
| GDP rate | 10.0% | ₹697 | -59.7% |
| Half implied | 10.8% | ₹740 | -57.2% |
| Implied | 21.5% | ₹1,727 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 5.0% growth, the model values BEML at ₹465, below today's ₹1,727.
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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.