Reverse DCF
What growth does the market imply for LODHA?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
30.8% implied annual FCF growth
The market is pricing in exceptional growth that only a handful of companies sustain for a decade. For context, this company has historically grown at 19.8%. High execution risk.
Current Price
₹899
Historical Growth
19.8%
FCF Yield
0.79%
Price / FCF
126.7x
Plain English
To justify today's price of ₹899.30, LODHA.NS needs to grow its free cash flow at 30.8% per year for the next 10 years. That is 11.0% faster than its historical growth rate of 19.8%. At its historical growth rate, the stock would take 19 years to justify today's price. The market is effectively paying for a perfect future.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| GDP rate | 10.0% | ₹129 | -85.7% |
| Half implied | 15.4% | ₹230 | -74.4% |
| Historical | 19.8% | ₹351 | -60.9% |
| Implied | 30.8% | ₹899 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 19.8% growth, the model values LODHA at ₹351, below today's ₹899.
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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.