Reverse DCF
What growth does the market imply for EIHOTEL?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
26.6% 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 15.1%. High execution risk.
Current Price
₹293
Historical Growth
15.1%
FCF Yield
1.62%
Price / FCF
61.9x
Plain English
To justify today's price of ₹293.30, EIHOTEL.NS needs to grow its free cash flow at 26.6% per year for the next 10 years. That is 11.5% faster than its historical growth rate of 15.1%. 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% | ₹86 | -70.7% |
| Half implied | 13.3% | ₹110 | -62.5% |
| Historical | 15.1% | ₹125 | -57.2% |
| Implied | 26.6% | ₹293 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 15.1% growth, the model values EIHOTEL at ₹125, below today's ₹293.
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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.