Reverse DCF
What growth does the market imply for M%26M?
Working backwards from the current price to find the FCF growth assumption baked in.
conservative
6.6% 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
₹3,209
Historical Growth
15.5%
FCF Yield
5.92%
Price / FCF
16.9x
Plain English
To justify today's price of $3208.60, M&M.NS needs to grow its free cash flow at 6.6% per year for the next 10 years. That is 9.0% slower than its historical growth rate of 15.5%. 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 |
|---|---|---|---|
| Half implied | 3.3% | ₹2,255 | -29.7% |
| Implied | 6.6% | ₹3,226 | +0.5% |
| GDP rate | 10.0% | ₹4,561 | +42.2% |
| Historical | 15.5% | ₹7,645 | +138.3% |
At Historical Growth Rate
It would take 3 years for M%26M to organically grow into today's price assuming its historical FCF growth of 15.5%.
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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.