Reverse DCF
What growth does the market imply for POWERMECH?
Working backwards from the current price to find the FCF growth assumption baked in.
very aggressive
28.2% 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 17.1%. High execution risk.
Current Price
₹2,790
Historical Growth
17.1%
FCF Yield
1.15%
Price / FCF
87.3x
Plain English
To justify today's price of ₹2605.90, POWERMECH.NS needs to grow its free cash flow at 28.2% per year for the next 10 years. That is 11.1% faster than its historical growth rate of 17.1%. 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.
Adjust Assumptions
Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| GDP rate | 10.0% | ₹518 | -80.1% |
| Half implied | 14.1% | ₹774 | -70.3% |
| Historical | 17.1% | ₹1,019 | -60.9% |
| Implied | 28.2% | ₹2,606 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At 17.1% growth, the model values POWERMECH at ₹1,019, below today's ₹2,790.
See full DCF analysis
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.