Reverse DCF
What growth does the market imply for ESABINDIA?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
20.6% 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 12.3%. High execution risk.
Current Price
₹5,909
Historical Growth
12.3%
FCF Yield
1.89%
Price / FCF
52.8x
Plain English
To justify today's price of $5909.10, ESABINDIA.NS needs to grow its free cash flow at 20.6% per year for the next 10 years. That is 8.3% faster than its historical growth rate of 12.3%. 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 |
|---|---|---|---|
| GDP rate | 10.0% | ₹2,639 | -55.3% |
| Half implied | 10.3% | ₹2,702 | -54.3% |
| Historical | 12.3% | ₹3,147 | -46.7% |
| Implied | 20.6% | ₹5,918 | +0.2% |
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Bear/base/bull scenarios, sensitivity heatmap, Monte Carlo, 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.