Reverse DCF

What growth does the market imply for ECLERX?

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

conservative

7.3% 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

₹1,573

Historical Growth

14.7%

FCF Yield

4.17%

Price / FCF

24.0x

Plain English

To justify today's price of $1572.60, ECLERX.NS needs to grow its free cash flow at 7.3% per year for the next 10 years. That is 7.5% slower than its historical growth rate of 14.7%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.

Adjust Assumptions

9.8%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Half implied3.6%₹1,176-25.2%
Implied7.3%₹1,564-0.5%
GDP rate10.0%₹1,941+23.4%
Historical14.7%₹2,825+79.6%

At Historical Growth Rate

It would take 3 years for ECLERX to organically grow into today's price assuming its historical FCF growth of 14.7%.

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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.