Reverse DCF

What growth does the market imply for BEML?

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

aggressive

18.5% implied annual FCF growth

The market is pricing in above-average growth. Achievable for a high-quality business but leaves limited margin for error — any slowdown could hurt the price.

Current Price

₹1,724

Historical Growth

14.0%

FCF Yield

1.89%

Price / FCF

52.8x

Plain English

To justify today's price of $1723.90, BEML.NS needs to grow its free cash flow at 18.5% per year for the next 10 years. That is 4.5% faster than its historical growth rate of 14.0%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.

Adjust Assumptions

10.2%
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 implied9.3%₹807-53.2%
GDP rate10.0%₹858-50.3%
Historical14.0%₹1,191-30.9%
Implied18.5%₹1,714-0.6%

At Historical Growth Rate

It would take 17 years for BEML to organically grow into today's price assuming its historical FCF growth of 14.0%.

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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.