Reverse DCF
What growth does the market imply for NBCC?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
22.6% implied annual FCF growth
The market is pricing in exceptional growth that only a handful of companies sustain for a decade. For context, this company has historically grown at 10.8%. High execution risk.
Current Price
₹105
Historical Growth
10.8%
FCF Yield
1.42%
Price / FCF
70.6x
Plain English
To justify today's price of ₹105.16, NBCC.NS needs to grow its free cash flow at 22.6% per year for the next 10 years. That is 11.7% faster than its historical growth rate of 10.8%. 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 |
|---|---|---|---|
| GDP rate | 10.0% | ₹44 | -57.8% |
| Historical | 10.8% | ₹47 | -55.5% |
| Half implied | 11.3% | ₹48 | -54.1% |
| Implied | 22.6% | ₹105 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 10.8% growth, the model values NBCC at ₹47, below today's ₹105.
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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.