Reverse DCF
What growth does the market imply for CDSL?
Working backwards from the current price to find the FCF growth assumption baked in.
reasonable
21.5% implied annual FCF growth
The market's growth assumption looks achievable — it is in line with or below what this company has historically delivered.
Current Price
₹1,354
Historical Growth
20.0%
FCF Yield
1.37%
Price / FCF
73.1x
Plain English
To justify today's price of $1353.60, CDSL.NS needs to grow its free cash flow at 21.5% per year for the next 10 years. That is 1.5% faster than its historical growth rate of 20.0%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.
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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% | ₹543 | -59.9% |
| Half implied | 10.8% | ₹576 | -57.4% |
| Historical | 20.0% | ₹1,200 | -11.3% |
| Implied | 21.5% | ₹1,350 | -0.2% |
At Historical Growth Rate
It would take 12 years for CDSL 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.