Reverse DCF
What growth does the market imply for POLYCAB?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
21.0% 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 12.0%. High execution risk.
Current Price
₹9,594
Historical Growth
12.0%
FCF Yield
1.76%
Price / FCF
56.8x
Plain English
To justify today's price of ₹9594.00, POLYCAB.NS needs to grow its free cash flow at 21.0% per year for the next 10 years. That is 8.9% faster than its historical growth rate of 12.0%. 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% | ₹3,970 | -58.6% |
| Half implied | 10.5% | ₹4,135 | -56.9% |
| Historical | 12.0% | ₹4,699 | -51.0% |
| Implied | 21.0% | ₹9,594 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 12.0% growth, the model values POLYCAB at ₹4,699, below today's ₹9,594.
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Bear/base/bull scenarios, sensitivity heatmap, reverse DCF, and more.
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.