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.

Adjust Assumptions

11.1%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Half implied3.6%₹54-40.8%
Implied7.3%₹92+0.7%
GDP rate10.0%₹128+41.0%
Historical17.6%₹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%.

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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.