Reverse DCF
What growth does the market imply for LT?
Working backwards from the current price to find the FCF growth assumption baked in.
aggressive
17.8% 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
₹3,918
Historical Growth
14.2%
FCF Yield
2.21%
Price / FCF
45.2x
Plain English
To justify today's price of ₹3917.50, LT.NS needs to grow its free cash flow at 17.8% per year for the next 10 years. That is 3.6% faster than its historical growth rate of 14.2%. 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 |
|---|---|---|---|
| Half implied | 8.9% | ₹1,526 | -61.0% |
| GDP rate | 10.0% | ₹1,739 | -55.6% |
| Historical | 14.2% | ₹2,751 | -29.8% |
| Implied | 17.8% | ₹3,918 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 14.2% growth, the model values LT at ₹2,751, below today's ₹3,918.
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.