Reverse DCF
What growth does the market imply for CGPOWER?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
28.0% 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 16.4%. High execution risk.
Current Price
₹752
Historical Growth
16.4%
FCF Yield
0.83%
Price / FCF
121.0x
Plain English
To justify today's price of $751.60, CGPOWER.NS needs to grow its free cash flow at 28.0% per year for the next 10 years. That is 11.6% faster than its historical growth rate of 16.4%. 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.
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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% | ₹184 | -75.5% |
| Half implied | 14.0% | ₹253 | -66.4% |
| Historical | 16.4% | ₹306 | -59.3% |
| Implied | 28.0% | ₹750 | -0.2% |
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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.