Reverse DCF
What growth does the market imply for ELGIEQUIP?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
21.9% 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 9.3%. High execution risk.
Current Price
₹544
Historical Growth
9.3%
FCF Yield
2.32%
Price / FCF
43.2x
Plain English
To justify today's price of $543.50, ELGIEQUIP.NS needs to grow its free cash flow at 21.9% per year for the next 10 years. That is 12.6% faster than its historical growth rate of 9.3%. 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 |
|---|---|---|---|
| Historical | 9.3% | ₹208 | -61.7% |
| GDP rate | 10.0% | ₹220 | -59.5% |
| Half implied | 10.9% | ₹236 | -56.5% |
| Implied | 21.9% | ₹543 | -0.1% |
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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.