Reverse DCF
What growth does the market imply for HATHWAY?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
27.1% 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 5.2%. High execution risk.
Current Price
₹11
Historical Growth
5.2%
FCF Yield
1.15%
Price / FCF
87.2x
Plain English
To justify today's price of $11.11, HATHWAY.NS needs to grow its free cash flow at 27.1% per year for the next 10 years. That is 21.9% faster than its historical growth rate of 5.2%. 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 |
|---|---|---|---|
| Historical | 5.2% | ₹2 | -80.0% |
| GDP rate | 10.0% | ₹3 | -71.8% |
| Half implied | 13.6% | ₹4 | -63.4% |
| Implied | 27.1% | ₹11 | +0.1% |
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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.