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.

Adjust Assumptions

11.1%
6%13%20%
4.0%
0%3%6%

Growth Scenarios

What the stock is worth at different growth assumptions

ScenarioFCF GrowthImplied IVMoS vs Price
Historical0.4%₹391-30.7%
Half implied1.7%₹460-18.6%
Implied3.4%₹559-0.9%
GDP rate10.0%₹1,103+95.4%

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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.