Reverse DCF
What growth does the market imply for CEATLTD?
Working backwards from the current price to find the FCF growth assumption baked in.
conservative
3.8% implied annual FCF growth
The market is pricing in below-GDP growth — very conservative assumption. If the company delivers anywhere near its historical rate, there is significant upside.
Current Price
₹3,658
Historical Growth
18.0%
FCF Yield
6.57%
Price / FCF
15.2x
Plain English
To justify today's price of $3657.80, CEATLTD.NS needs to grow its free cash flow at 3.8% per year for the next 10 years. That is 14.2% slower than its historical growth rate of 18.0%. 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 |
|---|---|---|---|
| Half implied | 1.9% | ₹3,074 | -16.0% |
| Implied | 3.8% | ₹3,643 | -0.4% |
| GDP rate | 10.0% | ₹6,313 | +72.6% |
| Historical | 18.0% | ₹12,362 | +238.0% |
At Historical Growth Rate
It would take 3 years for CEATLTD to organically grow into today's price assuming its historical FCF growth of 18.0%.
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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.