Reverse DCF
What growth does the market imply for LTM?
Working backwards from the current price to find the FCF growth assumption baked in.
conservative
8.0% 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
₹3,944
Historical Growth
2.0%
FCF Yield
4.01%
Price / FCF
25.0x
Plain English
To justify today's price of ₹3944.10, LTM.NS needs to grow its free cash flow at 8.0% per year for the next 10 years. That is 6.0% faster 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.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | 2.0% | ₹2,436 | -38.2% |
| Half implied | 4.0% | ₹2,852 | -27.7% |
| Implied | 8.0% | ₹3,944 | +0.0% |
| GDP rate | 10.0% | ₹4,615 | +17.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 2.0% growth, the model values LTM at ₹2,436, below today's ₹3,944.
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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.