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
21.3% 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 17.7%. High execution risk.
Current Price
₹7,818
Historical Growth
17.7%
FCF Yield
1.52%
Price / FCF
65.7x
Plain English
To justify today's price of $7818.00, POLYCAB.NS needs to grow its free cash flow at 21.3% per year for the next 10 years. That is 3.6% faster than its historical growth rate of 17.7%. At its historical growth rate, the stock would take 14 years to justify today's price. The market is effectively paying for a perfect future.
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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% | ₹3,069 | -60.7% |
| Half implied | 10.7% | ₹3,248 | -58.5% |
| Historical | 17.7% | ₹5,831 | -25.4% |
| Implied | 21.3% | ₹7,827 | +0.1% |
At Historical Growth Rate
It would take 14 years for POLYCAB to organically grow into today's price assuming its historical FCF growth of 17.7%.
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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.