Reverse DCF

What growth does the market imply for INDIANHUME?

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

conservative

3.8% implied annual FCF growth

The market is pricing in below-GDP growth — very conservative assumption. If the company delivers anywhere near its historical rate, there is significant upside.

Current Price

₹326

Historical Growth

4.3%

FCF Yield

8.68%

Price / FCF

11.5x

Plain English

To justify today's price of $325.85, INDIANHUME.NS needs to grow its free cash flow at 3.8% per year for the next 10 years. That is 0.5% slower than its historical growth rate of 4.3%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.

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
Half implied1.9%₹271-16.9%
Implied3.8%₹324-0.4%
Historical4.3%₹342+4.9%
GDP rate10.0%₹574+76.0%

At Historical Growth Rate

It would take 3 years for INDIANHUME to organically grow into today's price assuming its historical FCF growth of 4.3%.

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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.