Reverse DCF
What growth does the market imply for ICRA?
Working backwards from the current price to find the FCF growth assumption baked in.
aggressive
16.8% implied annual FCF growth
The market is pricing in above-average growth. Achievable for a high-quality business but leaves limited margin for error — any slowdown could hurt the price.
Current Price
₹5,403
Historical Growth
12.5%
FCF Yield
2.55%
Price / FCF
39.2x
Plain English
To justify today's price of $5402.50, ICRA.NS needs to grow its free cash flow at 16.8% per year for the next 10 years. That is 4.2% faster than its historical growth rate of 12.5%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.
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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 | 8.4% | ₹2,849 | -47.3% |
| GDP rate | 10.0% | ₹3,223 | -40.3% |
| Historical | 12.5% | ₹3,909 | -27.6% |
| Implied | 16.8% | ₹5,405 | +0.0% |
At Historical Growth Rate
It would take 18 years for ICRA to organically grow into today's price assuming its historical FCF growth of 12.5%.
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Bear/base/bull scenarios, sensitivity heatmap, Monte Carlo, 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.