Reverse DCF
What growth does the market imply for MGEL?
Working backwards from the current price to find the FCF growth assumption baked in.
conservative
4.3% 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
₹14
Historical Growth
15.7%
FCF Yield
9.76%
Price / FCF
10.2x
Plain English
To justify today's price of $13.56, MGEL.NS needs to grow its free cash flow at 4.3% per year for the next 10 years. That is 11.4% slower than its historical growth rate of 15.7%. 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 | 2.1% | ₹11 | -22.3% |
| Implied | 4.3% | ₹13 | -0.5% |
| GDP rate | 10.0% | ₹24 | +79.8% |
| Historical | 15.7% | ₹41 | +204.4% |
At Historical Growth Rate
It would take 3 years for MGEL to organically grow into today's price assuming its historical FCF growth of 15.7%.
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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.