Reverse DCF
What growth does the market imply for ESTER?
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
₹91
Historical Growth
17.6%
FCF Yield
9.16%
Price / FCF
10.9x
Plain English
To justify today's price of $90.87, ESTER.NS needs to grow its free cash flow at 7.3% per year for the next 10 years. That is 10.3% slower than its historical growth rate of 17.6%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.
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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 | 3.6% | ₹54 | -40.8% |
| Implied | 7.3% | ₹92 | +0.7% |
| GDP rate | 10.0% | ₹128 | +41.0% |
| Historical | 17.6% | ₹282 | +210.0% |
At Historical Growth Rate
It would take 3 years for ESTER to organically grow into today's price assuming its historical FCF growth of 17.6%.
See full DCF analysis
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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.