Reverse DCF
What growth does the market imply for ELGIEQUIP?
Working backwards from the current price to find the FCF growth assumption baked in.
aggressive
19.9% implied annual FCF growth
The market is pricing in above-average growth. Achievable for a high-quality business but leaves limited margin for error — any slowdown could hurt the price.
Current Price
₹593
Historical Growth
11.5%
FCF Yield
1.60%
Price / FCF
62.5x
Plain English
To justify today's price of ₹593.45, ELGIEQUIP.NS needs to grow its free cash flow at 19.9% per year for the next 10 years. That is 8.5% faster than its historical growth rate of 11.5%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Half implied | 10.0% | ₹265 | -55.3% |
| GDP rate | 10.0% | ₹266 | -55.2% |
| Historical | 11.5% | ₹300 | -49.4% |
| Implied | 19.9% | ₹593 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 11.5% growth, the model values ELGIEQUIP at ₹300, below today's ₹593.
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Bear/base/bull scenarios, sensitivity heatmap, reverse DCF, and more.
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.