Reverse DCF

What growth does the market imply for GAEL?

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

unrealistic

35.7% implied annual FCF growth

The market is pricing in hyper-growth that virtually no established company has sustained for 10 years. This implies either a structural disruption scenario or significant overvaluation.

Current Price

₹151

Historical Growth

-4.0%

FCF Yield

0.64%

Price / FCF

157.3x

Plain English

To justify today's price of $151.37, GAEL.NS needs to grow its free cash flow at 35.7% per year for the next 10 years. That is 39.8% faster than its historical growth rate of -4.0%. 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.

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
Historical-4.0%₹3-98.1%
GDP rate10.0%₹17-88.5%
Half implied17.9%₹36-76.2%
Implied35.7%₹151-0.2%

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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.