Reverse DCF
What growth does the market imply for IRB?
Working backwards from the current price to find the FCF growth assumption baked in.
aggressive
11.0% 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
₹22
Historical Growth
4.6%
FCF Yield
8.92%
Price / FCF
11.2x
Plain English
To justify today's price of $22.18, IRB.NS needs to grow its free cash flow at 11.0% per year for the next 10 years. That is 6.3% faster than its historical growth rate of 4.6%. 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 |
|---|---|---|---|
| Historical | 4.6% | ₹8 | -65.1% |
| Half implied | 5.5% | ₹9 | -58.2% |
| GDP rate | 10.0% | ₹19 | -12.4% |
| Implied | 11.0% | ₹22 | -0.5% |
See full DCF analysis
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.