Reverse DCF
What growth does the market imply for NELCAST?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
31.7% 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 3.3%. High execution risk.
Current Price
₹137
Historical Growth
3.3%
FCF Yield
0.97%
Price / FCF
102.6x
Plain English
To justify today's price of $137.15, NELCAST.NS needs to grow its free cash flow at 31.7% per year for the next 10 years. That is 28.4% faster than its historical growth rate of 3.3%. 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 | 3.3% | ₹0 | -100.0% |
| GDP rate | 10.0% | ₹6 | -95.5% |
| Half implied | 15.8% | ₹24 | -82.6% |
| Implied | 31.7% | ₹136 | -0.5% |
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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.