Reverse DCF

What growth does the market imply for BROOKS?

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

very aggressive

32.6% 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 1.2%. High execution risk.

Current Price

₹67

Historical Growth

1.2%

FCF Yield

0.81%

Price / FCF

123.7x

Plain English

To justify today's price of $67.10, BROOKS.NS needs to grow its free cash flow at 32.6% per year for the next 10 years. That is 31.4% faster than its historical growth rate of 1.2%. 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

11.1%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Historical1.2%₹4-94.2%
GDP rate10.0%₹10-85.0%
Half implied16.3%₹18-73.3%
Implied32.6%₹67+0.2%

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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.