Reverse DCF

What growth does the market imply for LTM?

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

reasonable

10.3% implied annual FCF growth

The market's growth assumption looks achievable — it is in line with or below what this company has historically delivered.

Current Price

₹4,721

Historical Growth

18.0%

FCF Yield

3.35%

Price / FCF

29.9x

Plain English

To justify today's price of $4721.00, LTM.NS needs to grow its free cash flow at 10.3% per year for the next 10 years. That is 7.7% slower than its historical growth rate of 18.0%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.

Adjust Assumptions

9.8%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Half implied5.1%₹3,125-33.8%
GDP rate10.0%₹4,616-2.2%
Implied10.3%₹4,711-0.2%
Historical18.0%₹8,738+85.1%

At Historical Growth Rate

It would take 4 years for LTM to organically grow into today's price assuming its historical FCF growth of 18.0%.

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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.