Reverse DCF

What growth does the market imply for FRACTAL?

Working backwards from the current price to find the FCF growth assumption baked in.

very aggressive

23.3% 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 18.0%. High execution risk.

Current Price

₹876

Historical Growth

18.0%

FCF Yield

2.09%

Price / FCF

47.9x

Plain English

To justify today's price of $875.75, FRACTAL.NS needs to grow its free cash flow at 23.3% per year for the next 10 years. That is 5.3% faster than its historical growth rate of 18.0%. At its historical growth rate, the stock would take 16 years to justify today's price. The market is effectively paying for a perfect future.

Adjust Assumptions

12.8%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
GDP rate10.0%₹318-63.7%
Half implied11.6%₹360-58.9%
Historical18.0%₹587-32.9%
Implied23.3%₹874-0.2%

At Historical Growth Rate

It would take 16 years for FRACTAL to organically grow into today's price assuming its historical FCF growth of 18.0%.

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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.