Reverse DCF

What growth does the market imply for DHARMAJ?

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

very aggressive

34.7% 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 20.0%. High execution risk.

Current Price

₹256

Historical Growth

20.0%

FCF Yield

0.76%

Price / FCF

131.6x

Plain English

To justify today's price of $255.52, DHARMAJ.NS needs to grow its free cash flow at 34.7% per year for the next 10 years. That is 14.7% faster than its historical growth rate of 20.0%. 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
GDP rate10.0%₹11-95.7%
Half implied17.3%₹45-82.3%
Historical20.0%₹63-75.3%
Implied34.7%₹257+0.7%

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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.