Reverse DCF
What growth does the market imply for HEG?
Working backwards from the current price to find the FCF growth assumption baked in.
reasonable
11.0% implied annual FCF growth
The market's growth assumption looks achievable — it is in line with or below what this company has historically delivered.
Current Price
₹508
Historical Growth
10.7%
FCF Yield
4.35%
Price / FCF
23.0x
Plain English
To justify today's price of ₹507.50, HEG.NS needs to grow its free cash flow at 11.0% per year for the next 10 years. That is 0.3% faster than its historical growth rate of 10.7%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Half implied | 5.5% | ₹323 | -36.3% |
| GDP rate | 10.0% | ₹469 | -7.6% |
| Historical | 10.7% | ₹496 | -2.3% |
| Implied | 11.0% | ₹508 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 10.7% growth, the model values HEG at ₹496, below today's ₹508.
See full DCF analysis
Bear/base/bull scenarios, sensitivity heatmap, reverse DCF, and more.
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.