Reverse DCF

What growth does the market imply for LOYALTEX?

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

conservative

-17.3% 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

₹201

Historical Growth

2.0%

FCF Yield

152.63%

Price / FCF

0.7x

Plain English

To justify today's price of $201.30, LOYALTEX.NS needs to grow its free cash flow at -17.3% per year for the next 10 years. That is 19.3% slower than its historical growth rate of 2.0%. 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
Implied-17.3%₹199-1.0%
Half implied-8.7%₹961+377.3%
Historical2.0%₹3,034+1407.0%
GDP rate10.0%₹6,285+3022.3%

At Historical Growth Rate

It would take 3 years for LOYALTEX to organically grow into today's price assuming its historical FCF growth of 2.0%.

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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.