Reverse DCF
What growth does the market imply for MEDICO?
Working backwards from the current price to find the FCF growth assumption baked in.
unrealistic
39.3% implied annual FCF growth
The market is pricing in hyper-growth that virtually no established company has sustained for 10 years. This implies either a structural disruption scenario or significant overvaluation.
Current Price
₹41
Historical Growth
5.4%
FCF Yield
0.50%
Price / FCF
198.9x
Plain English
To justify today's price of $40.86, MEDICO.NS needs to grow its free cash flow at 39.3% per year for the next 10 years. That is 33.9% faster than its historical growth rate of 5.4%. At its historical growth rate, the stock cannot justify its current price within a 20-year horizon. The market is pricing in a step-change in performance.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | 5.4% | ₹2 | -95.8% |
| GDP rate | 10.0% | ₹3 | -92.3% |
| Half implied | 19.6% | ₹8 | -79.5% |
| Implied | 39.3% | ₹41 | +0.8% |
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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.