Reverse DCF

What growth does the market imply for BRITANNIA?

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

very aggressive

20.6% 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 2.9%. High execution risk.

Current Price

₹5,565

Historical Growth

2.9%

FCF Yield

1.62%

Price / FCF

61.8x

Plain English

To justify today's price of $5565.00, BRITANNIA.NS needs to grow its free cash flow at 20.6% per year for the next 10 years. That is 17.7% faster than its historical growth rate of 2.9%. 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.

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
Historical2.9%₹1,361-75.5%
GDP rate10.0%₹2,409-56.7%
Half implied10.3%₹2,470-55.6%
Implied20.6%₹5,616+0.9%

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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.