Reverse DCF
What growth does the market imply for PRECAM?
Working backwards from the current price to find the FCF growth assumption baked in.
aggressive
15.4% implied annual FCF growth
The market is pricing in above-average growth. Achievable for a high-quality business but leaves limited margin for error — any slowdown could hurt the price.
Current Price
₹153
Historical Growth
-5.0%
FCF Yield
2.90%
Price / FCF
34.4x
Plain English
To justify today's price of ₹152.50, PRECAM.NS needs to grow its free cash flow at 15.4% per year for the next 10 years. That is 20.4% faster than its historical growth rate of -5.0%. This is optimistic but not impossible for a high-quality business. The stock leaves little room for error — any slowdown could hurt the price.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | -5.0% | ₹32 | -78.9% |
| Half implied | 7.7% | ₹85 | -44.6% |
| GDP rate | 10.0% | ₹101 | -33.6% |
| Implied | 15.4% | ₹153 | +0.0% |
At Historical Growth Rate
DCF horizon: 10 years. At -5.0% growth, the model values PRECAM at ₹32, below today's ₹153.
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.