Reverse DCF
What growth does the market imply for MOTHERSON?
Working backwards from the current price to find the FCF growth assumption baked in.
aggressive
13.2% implied annual FCF growth
The market is pricing in above-average growth. Achievable for a high-quality business but leaves limited margin for error — any slowdown could hurt the price.
Current Price
₹140
Historical Growth
3.2%
FCF Yield
4.55%
Price / FCF
22.0x
Plain English
To justify today's price of ₹139.83, MOTHERSON.NS needs to grow its free cash flow at 13.2% per year for the next 10 years. That is 10.0% faster than its historical growth rate of 3.2%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | 3.2% | ₹60 | -56.9% |
| Half implied | 6.6% | ₹80 | -42.5% |
| GDP rate | 10.0% | ₹106 | -23.9% |
| Implied | 13.2% | ₹140 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 3.2% growth, the model values MOTHERSON at ₹60, below today's ₹140.
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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.