Reverse DCF

What growth does the market imply for HCC?

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

very aggressive

21.3% 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 -5.0%. High execution risk.

Current Price

₹20

Historical Growth

-5.0%

FCF Yield

2.19%

Price / FCF

45.7x

Plain English

To justify today's price of $20.20, HCC.NS needs to grow its free cash flow at 21.3% per year for the next 10 years. That is 26.3% faster than its historical growth rate of -5.0%. 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-5.0%₹0-100.0%
GDP rate10.0%₹6-70.1%
Half implied10.7%₹7-67.4%
Implied21.3%₹20+0.4%

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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.