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
10.4% 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
₹21
Historical Growth
1.5%
FCF Yield
9.64%
Price / FCF
10.4x
Plain English
To justify today's price of ₹20.52, IRB.NS needs to grow its free cash flow at 10.4% per year for the next 10 years. That is 9.0% faster than its historical growth rate of 1.5%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.
Adjust Assumptions
Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | 1.5% | ₹3 | -86.4% |
| Half implied | 5.2% | ₹9 | -57.2% |
| GDP rate | 10.0% | ₹19 | -5.3% |
| Implied | 10.4% | ₹21 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 1.5% growth, the model values IRB at ₹3, below today's ₹21.
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.