Reverse DCF
What growth does the market imply for PRECOT?
Working backwards from the current price to find the FCF growth assumption baked in.
conservative
3.4% implied annual FCF growth
The market is pricing in below-GDP growth — very conservative assumption. If the company delivers anywhere near its historical rate, there is significant upside.
Current Price
₹565
Historical Growth
0.4%
FCF Yield
10.49%
Price / FCF
9.5x
Plain English
To justify today's price of $564.60, PRECOT.NS needs to grow its free cash flow at 3.4% per year for the next 10 years. That is 3.0% faster than its historical growth rate of 0.4%. This looks achievable — the market is not pricing in heroic assumptions. There may be genuine upside if the company executes.
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Growth Scenarios
What the stock is worth at different growth assumptions
| Scenario | FCF Growth | Implied IV | MoS vs Price |
|---|---|---|---|
| Historical | 0.4% | ₹391 | -30.7% |
| Half implied | 1.7% | ₹460 | -18.6% |
| Implied | 3.4% | ₹559 | -0.9% |
| GDP rate | 10.0% | ₹1,103 | +95.4% |
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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.